http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Domestic Tourism in Asia and the Pacific http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Copyright © 2013, World Tourism Organization (UNWTO) Calle Capitán Haya, 42 28020 Madrid, Spain
Domestic Tourism in Asia and the Pacific ISBN printed version: 978-92-844-1482-6 ISBN electronic version: 978-92-844-1483-3
Published and printed by the World Tourism Organization (UNWTO), Madrid, Spain. First printing: 2013 All rights reserved.
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World Tourism Organization (2013), Domestic Tourism in Asia and the Pacific, UNWTO, Madrid.
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Table of Contents ______
Foreword ...... 9
Acknowledgement ...... 11
Executive Summary ...... 13
Introduction ...... 41
1 Australia ...... 51 1.1 Domestic Tourism in Australia ...... 51 1.1.1 Introduction ...... 51 1.1.2 Overview of Domestic Tourism ...... 51 1.1.3 Case Study: Impact on Social Tourism ...... 60 1.1.4 Conclusion and Recommendation ...... 62
2 Bhutan ...... 67 Constraints for the Development of Domestic Tourism in Bhutan ...... 67
3 China ...... 71 3.1 Domestic Tourism in China: Policy, Practice and Prospect ...... 71 3.1.1 Introduction ...... 72 3.1.2 Domestic Tourism Profile ...... 74 3.1.3 Major Impact of Domestic Tourism ...... 84 3.1.4 Discussion ...... 86 3.1.5 Conclusion: Future Trends and Policy Recommendations .... 89 3.2 Analyzing the Domestic Tourist Markets of China – A Case Study of Guilin 92 3.2.1 Introduction ...... 92 3.2.2 Literature Review ...... 94 3.2.3 Methodology ...... 96 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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3.3 Travel Experience and Life Satisfaction through Mobility: A Constructivist Perspective on Domestic Tourism in China ...... 110 3.3.1 Introduction ...... 110 3.3.2 The Context of Domestic Tourism in China ...... 110 3.3.3 Travel Experience and Life Satisfaction through Mobility ...... 114 3.3.4 Conclusion ...... 122
4 India ...... 131 4.1 Domestic Tourism in India: The Industry, Ground Reality and Policy Framework ...... 131 4.1.1 Introduction ...... 131 4.1.2 Domestic Tourism Industry ...... 132 4.1.3 Domestic Tourism in Policy and Administration ...... 140 4.1.4 Discussion: The Meeting of Ground Reality and Policy ...... 143 4.1.5 Conclusion and Recommendation ...... 148
5 Indonesia ...... 153 5.1 Domestic Tourism in Indonesia ...... 153 5.1.1 Overall Country Profile ...... 153 5.1.2 Domestic Tourism Profile and Development ...... 162 5.1.3 Case Study: The Potential of Domestic Tourism in Bali and Bandung ...... 171 5.1.4 Conclusion and Recommendation ...... 182
6 Iran ...... 187 6.1 Domestic Tourism in Iran ...... 187 6.1.1 Introduction ...... 187 6.1.2 Overall Country Profile ...... 189 6.1.3 Domestic Tourism Profile ...... 202 6.1.4 Conclusion and Recommendation ...... 207 6.2 Managing “Nowruz” Holidays: The Case of Fars Province, Iran ...... 213 6.2.1 Introduction ...... 213 6.2.2 Nowruz in Iran ...... 214 6.2.3 Nowruz Holidays Management in Fars Province ...... 216 6.2.4 Conclusion and Recommendation ...... 220 6.3 A Case Study of Best Practice in Educational Tourism: Student Tours and Visits in Iran ...... 225 6.3.1 Introduction ...... 225 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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7 Japan ...... 239 7.1 Domestic Tourism in Japan ...... 239 7.1.1 Introduction ...... 239 7.1.2 Overall Country Profile ...... 241 7.1.3 Domestic Tourism Profile ...... 262 7.1.4 Case Study: Japanese Domestic Tourism Development ...... 279 7.1.5 Recommendation ...... 281
8 Republic of Korea ...... 285 8.1 Domestic Tourism in Republic of Korea ...... 285 8.1.1 Introduction ...... 285 8.1.2 Overall Tourism Profile ...... 286 8.1.3 Best Practices in the Revitalization of Domestic Tourism ..... 298 8.1.4 Conclusion and Recommendation ...... 309 8.2 A Case Study of Social Tourism Policies in Republic of Korea ...... 313 8.2.1 Introduction ...... 313 8.2.2 Social Tourism Policies ...... 315 8.2.3 Impact of Social Tourism ...... 320 8.2.4 Conclusion and Recommendation ...... 324 8.3 A Case Study of Rural Tourism in Republic of Korea ...... 326 8.3.1 Introduction ...... 326 8.3.2 Overview of Rural Tourism ...... 327 8.3.3 Rural Tourism Analysis by Types ...... 329 8.3.4 Conclusion and Recommendation ...... 334
9 Malaysia ...... 337 9.1 Domestic Tourism in Malaysia ...... 337 9.1.1 Overview of Domestic Tourism ...... 337 9.1.2 Domestic Tourism Profile ...... 338 9.1.3 A Case Study of Domestic Tourism – Malaysia Evidence focusing on the Role of Transportation ... 349
10 Mongolia ...... 357 10.1 Domestic Tourism in Mongolia ...... 357 10.1.1 Introduction ...... 357 10.1.2 Overall Country Profile ...... 359 10.1.3 Domestic Tourism Profile ...... 370
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11 New Zealand ...... 393 11.1 Domestic Tourism Market Segmentation ...... 393 11.1.1 Executive Summary ...... 393 11.1.2 Market Segmentation ...... 496
12 Pakistan ...... 403 12.1 Domestic Tourism in Pakistan ...... 403 12.1.1 Introduction ...... 403 12.1.2 Overview of Tourism ...... 404 12.1.3 Overall Country Profile: Prospects of Domestic Tourism ...... 408 12.1.4 Domestic Tourism Profile ...... 425 12.1.5 Conclusion and Recommendation ...... 430
13 Philippines ...... 437 13.1 Domestic Tourism in Philippines ...... 437 13.1.1 Introduction ...... 437 13.1.2 Overall Country Profile ...... 438 13.1.3 Domestic Tourism Profile ...... 450 13.1.4 Conclusion and Recommendation ...... 453 13.2 Domestic Tourism’s Role in Local Economic Development ...... 458 13.2.1 Introduction ...... 458 13.2.2 Enabling Factors ...... 462 13.2.3 Case of The Puerto Princesa City, Province of Palawan ...... 466 13.2.4 Conclusion ...... 471
14 Sri Lanka ...... 475 14.1 Domestic Tourism in Sri Lanka ...... 475 14.1.1 Introduction ...... 476 14.1.2 Overall Country Profile ...... 479 14.1.3 Domestic Tourism Profile ...... 488 14.1.4 Conclusion and Recommendation ...... 502
15 Thailand ...... 505 15.1 Some Reflections on Thai Domestic Tourism ...... 505 15.1.1 Introduction ...... 505 15.1.2 Overview of Tourism ...... 505 15.1.3 Domestic Tourism Profile ...... 512
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15.2 A Case Study of Community Based Tourism in Thailand ...... 529 15.2.1 Executive Summary ...... 529 15.2.2 Background: Community Based Tourism in the Thai Context ...... 531 15.2.3 Conclusion and Recommendation ...... 548
16 Vietnam ...... 553 16.1 Domestic Tourism in Vietnam ...... 553 16.1.1 Introduction ...... 554 16.1.2 Overall Country Profile ...... 555 16.1.3 Domestic Tourism Profile ...... 565 16.1.4 Case Study: Impact on Social Tourism ...... 575 16.1.5 Recommendation ...... 577
Conclusion ...... 579
List of Contributors ...... 585
List of Acronyms ...... 593 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Foreword ______
Domestic tourism is at the heart of the social fabric of Asia and the Pacific. Pilgrimages, festivals, and festivities are a central part of life in all the countries of the region, building on the various religions and their numerous offshoots, often associated with age-old agrarian practices. Indeed, even the ‘golden week,’ so dear to many cultures and the centre of annual domestic holidays in numerous Asian destinations, is steeped in this tradition.
Likewise, domestic tourism, although overshadowed by international tourism until recently, has been a major contributor to the economies of Asia and the Pacific. One of the fundamental reasons for this state of affairs was the quest for foreign exchange that countries sought as export earnings were particularly important in their initial stage of tourism development and ‘hard currency’ was in short supply. However, the situation has changed dramatically with the rapid economic growth in the region. The increase in the per capita income of many countries enabled a growing percentage of the population to take part in and profit from domestic tourism. The affluent middle class of Asia and the Pacific is today, not only a major source market for domestic tourism, but also an increasingly important segment of the outbound market. Moreover, domestic tourism has played a central role in many Asian destinations acting as a shock-absorber in countries affected by natural and man-made calamities that had a bearing on their international tourism.
While the economic benefits of domestic tourism cannot be ignored, the socio-cultural contribution it has on the ground plays an even greater role in the countries of Asia and Pacific. Indeed, one of the major objectives of the present study was to assess this important component. Country profiles and case studies therefore highlight issues such as employment, community involvement and sustainable development as these are equally, or even more important, than the volume of expenditure or the number of tourists.
I wish to extend my appreciation to the Ministry of Culture, Sports and Tourism of the Republic of Korea for funding this important research and to all those who contributed to this study, namely to Mr. Omar NAWAZ and Ms. Hyeon-Jin LEE, for their valuable inputs as http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
9 Domestic Tourism in Asia and the Pacific
I believe this innovative study will guide countries in Asia and the Pacific, and beyond, to enhance their understanding of the impact and reach of domestic tourism and provide ground for adequate policies that support the development of domestic tourism as a tool for economic growth and social cohesion.
Taleb Rifai Secretary-General, World Tourism Organization (UNWTO) http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Acknowledgements ______
UNWTO would like to acknowledge the following contributors to the study1:
Domestic Tourism in China: Policy, Practice and Prospect Professor Guangrui Zhang
Analyzing the Domestic Tourist Markets of China: A Case Study of Guilin Professor Jigang Bao and Dr Yueying Hazel Xu
Travel Experience and Life Satisfaction through Mobility – A Constructivist Perspective on Domestic Tourism in China Dr Honggen Xiao
Domestic Tourism in India: The Industry, Ground Reality and Policy Framework Dr Kiran A. Shinde
Domestic Tourism in Indonesia Dr Myra P. Gunawan and Ms Yani Adriani
Domestic Tourism in Iran Dr Zahed Ghaderi
Managing “Nowruz” Holidays: The Case of Fars Province, Iran Dr Hamid Zargham
A Case Study of Best Practice in Educational Tourism: Student Tours and Visits in Iran Mr Masih Sharif
Domestic Tourism in Japan Mr Tomohiko Watanabe http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
1 In alphabetical order of the study chapter.
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Domestic Tourism in Republic of Korea Dr Kang Wook Lee
A Case Study of Social Tourism Policies in Republic of Korea Dr Sun Jin Ji and Dr Jae Geul Kim
A Case Study of Rural Tourism in Republic of Korea Mr Hyung Doo Choi and Mr Hyun Suk Choi
A Case Study of Domestic Tourism – Malaysia Evidence Focusing on the Role of Transportation Dr Hossein Nezakati and Mr Yousef Keshavarz
Domestic Tourism in Mongolia Dr Amartuvshin Dorjsuren
Domestic Tourism in Pakistan Mr Zafarullah Siddiqui
Domestic Tourism in Philippines Dr Miguela M. Mena
Domestic Tourism’s Role in Local Economic Development Ms Maria Cherry Lyn S. Salazar-Rodolfo
Domestic Tourism in Sri Lanka Dr Nizam Lantra
Some Reflections on Thai Domestic Tourism Dr Therdchai (Ted) Choibamroong
A Case Study of Community Based Tourism in Thailand Ms Potjana Suansri and Mr Peter Richards
Domestic Tourism in Vietnam Mr Hoang Dao Bao Cam http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Executive Summary ______
Background and Objectives
The domestic tourism (DT) study was launched in September 2011 by the Regional Representation of Asia and the Pacific of UNWTO with the sponsorship of the Republic of Korea. The responses based on a concept note and a detailed set of Terms of Reference (ToR) – outlined in the Introduction to the present publication – were received from academics, professionals and tourism administrators of the following countries: Australia, Bhutan, China, India, Indonesia, Iran, Japan, Korea, Malaysia, Mongolia, New Zealand, Pakistan, Philippines, Sri Lanka, Thailand, and Vietnam. The main objectives were outlined as follows: a) Compile domestic tourism statistics and analyze characteristics focusing on its socio- economic impact and resilient capacity; b) elucidate information on the accommodation (formal and informal), transport, leisure, and safety and security sectors that have a bearing on domestic tourism; c) provide guidelines for sustainable development of domestic tourism and highlight best practice cases in terms of strategies, policies and product development; d) increase the related stakeholders’ awareness of domestic tourism which plays an important role in socio-economic development and industry’s resilience during global crisis situation; e) serve as a useful groundwork for further studies on domestic tourism in Asia and the Pacific and the rest of the world.
Tourism is an important element in the economy of Asian and Pacific countries. While international tourism has been highlighted due to its capacity of generating foreign exchange as an export earner, that many destinations in their formative years of tourism direly needed, domestic tourism (DT) was neglected both as an area of development as well as a subject of research. Statistics on DT, vital to any economic analysis, were either unavailable or unreliable since there was no strict adherence to standard measurement systems. International tourism, on the other hand, had the advantage of a system where http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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developed nations, adopted TSAs at its inception in the 1990s, whereas it permeated Asia and the Pacific much later with varying degrees of success depending on the strength of the accounting systems of the destinations under review.
The present study of DT across Asia and the Pacific draws heavily on TSAs that have been implemented. The TSAs by themselves are not viable without the supportive data of domestic travellers provided through household surveys conducted by National Tourism Administrations and Organizations (NTAs and NTOs). Surveys have not been implemented in all the countries under review and one of the outcomes of the above study was for requests for assistance in the implementation of household and administrative surveys. It must be noted that one of the major outcomes of the present study has been the emphasis laid on the socio-cultural element of DT by a majority of the contributors in various fields, of policy, planning, ethics and sustainability.
Methodology
Due to time and financial constraints most of the studies are dependent on secondary sources (desk research) for their information. Wherever access was possible, authors have availed themselves of data from the tourism satellite accounts (TSA) and the household and administrative surveys that are now a feature of the Asia and the Pacific destinations. Some cases of primary research where authors had worked on the subject previously on their own or through institutes to which they were attached also feature such as studies on China (Guilin), Iran, and the Republic of Korea to mention a few.
Overall Structure of the Document
The overall structure of the study reflects the difficulties encountered in the approach that is not uniform and have been undertaken according to the strengths and background knowledge of the authors. The contents tend to vary in depth and style of the contributors. The lack of precise data on domestic tourism has led to an over-emphasis on international tourism that was requested merely as a point of reference and in some cases to a perceived imbalance in the studies. The study on India stresses the role and implications of policy decisions, especially with pilgrimages as a reference source, while that of New Zealand is summarized from the country profile of the Ministry but concentrates on market segmentation that was extremely innovative and enriching in its approach. In this situation these 2 reports do not conform exactly to the TOR but contain more than useful data. In like http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Salient Findings of Domestic Tourism in Asia and the Pacific
The various case studies based on socio-economic and socio-cultural data such as on community based tourism in Thailand, ‘Nowruz’ holidays and educational tours in Iran, social and rural tourism in Korea, all of which have an impact on DT of the country, and which are pure case studies, are worthy of replication. These case studies border on social tourism with an element of sustainability, responsible and participatory tourism, that set the standards for others to emulate. Indeed, the social tourism policies outlined in the study on Korea with its detailed analysis of tourism vouchers and coupons based on assistance to the disenfranchised finds an echo in reports of other countries including China. The lessons learnt are universal and not confined to the Asia and Pacific region alone. The Korean efforts have been lauded by other Asian destinations that bemoan the lack of such facilities in their own countries.
Some authors have added specific case studies within the country profile such as Indonesia and the Philippines. In the case of Indonesia, Bali and Bandung have been included giving an insight into their growth from a historical perspective and the problems faced in the light of various incidents that affected them. The Philippines integrates a study on Puerto Princessa City, an example of a planned ‘green tourism’ sustainable venture.
Asia and the Pacific, unlike any other region in the world, is characterized by the historical, geographical, economical and political context that is unique and have an enormous bearing on tourism in general and DT in particular. Asia and the Pacific is marked by contrasts and heterogeneity that pervades all aspects of society. Even from the point of view of the evolution of tourism, the role of pilgrimages in India, Pakistan, Sri Lanka, and Indonesia is so imbedded in the social fabric that a rational approach to transport and accommodation is not possible. One simply wonders how millions move and stay in places which are devoid of the basic facilities.
The past 3 decades have witnessed different periods of economic and financial development in Asia and the Pacific. The rapid growth of the North East and South East Asian economies in the eighties and nineties led to the emergence of the “Tiger Economies” which, unfortunately, was followed by the Asian financial crisis of 1997 and, quite recently, the world financial crisis whose effects have not totally subsided. Asian tourism showed its resilience to withstand this plus the various natural and man-made calamities that befell such as SARS, AHI, Tsunami of 2004, and in the case of Indonesia and India, a series of acts of terrorism. Amidst these catastrophes Asian tourism has continued to maintain a healthy growth rate, much higher than the world average. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Family ties are sacrosanct in all Asian societies with the result that visiting friends and relatives (VFR) predominates both in the motivation (purpose of visit) and the place of stay. It is therefore, extremely difficult to evaluate the accommodation units used by this sector in
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their sojourns where residences of families and friends form a secondary home in their own right. As a matter of fact the study on Thailand revealed that the household survey questionnaires carried 2 categories: 1) family and 2) friends and relatives. The study revealed that VFR constitutes more than half and in some instances two thirds the motivation for DT visits. Added to this is the informal sector of accommodation which once again features as the most important unit used by DT in their stays. Since this sector is not within the purview of NTOs and NTAs questionnaires of the household surveys aiming at obtaining data on accommodation often fall short of the desired results. This should be one of the major priorities of household survey questionnaires in the future.
The other major characteristic of DT in the region is the demography. Home to over 60% of the world’s population the contrasts are enormous. China and India have a population of over a billion each while Bhutan wedged between both countries has only 716.000 people. China, has identified its population as its greatest DT asset as a ‘raw material’ to be exploited! Human resources are no doubt the bread and butter of domestic tourism but at the same time the population composition, especially one of ageing has become a negative factor that some of the ‘advanced’ Asia and Pacific destinations are attempting to tackle. The ageing population has become a major issue in Japan, Korea, Australia and to a certain extent in China. The galloping population increases of Asian destinations of the past have been controlled and countries such as Indonesia and Vietnam now look forward to the youth to carry forward their economic development. On the other hand low densities in countries such as Mongolia, Australia and New Zealand require other solutions.
The rapid and constant economic growth of the Asian destinations in the past three decades especially through globalization and liberalization has led to the emergence of an affluent middle-class who constitutes an important source market for DT. This middle-class that has emerged in the destinations and has been outlined by all the authors possesses sufficient disposable income to be able to compete with international visitors for goods and services in their respective countries. The reverse side is that this affluent class now prefer to travel abroad thereby depriving DT of a valuable market. Indonesia, Malaysia, Thailand, and the Philippines have evolved sophisticated marketing and advertising campaigns to entice this middle-class to stay at home.
Holidays and working hours have evolved in all the countries that, in the past, had stringent controls giving domestic tourism a big boost. Vietnam and China are two cases in point with the latter making a concerted effort to increase the number of paid holidays so that DT will benefit. Sometimes these measures have been taken through social pressures but by and large Asia and the Pacific now have not only the disposable income but also the leisure that http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
16 Executive Summary
Asian destinations have a number of holidays often associated with religion, culture and festivals that is an additional asset to DT especially for short breaks where outbound visits abroad are meaningless. Indonesia and Sri Lanka in particular observe national holidays of all major religious denominations thereby giving the local population the opportunity to make use of the tourism facilities reserved for international visitors. This has been done through selected price reductions during the holiday breaks.
Accumulated leave has been a problem of Australia (Australian slogan “No Leave No Life” has been aimed at DT through print and visual media) and Japan who have offered incentives and embarked on marketing campaigns to encourage its citizens to take their accumulated leave in the destinations. This is considered to be a significant reserve for DT.
The value of education and educational tours as a boost to DT has been stressed by most authors with concrete examples from Iran and Indonesia. The necessity to integrate tourism into the curriculum of students even at a young age is a policy that should find universal application. DT does not require the knowledge of a foreign language and can be taught in the local vernacular as interaction with the community does not call for other skills. However, this requires well structured courses that stress on sustainability and responsible tourism. Tourism in general and DT in particular has acted as a “shock absorber”, cushioning the negative impacts during crises. DT has been the reserve on which Asian destinations such as Indonesia and Sri Lanka have relied upon to protect their product, especially accommodation, from disuse and deterioration, and at the same time maintain and provide employment to the people whose livelihoods depended on tourism.
Word of mouth publicity has been the greatest ‘advertising agent’ of DT. The social media without any additional cost could be an effective marketing tool especially since many Asian and Pacific destinations are well equipped in IT, especially mobile phones with internet facilities.
The urban-rural ratio has been another major social and economic issue in many Asian destinations. Concerted efforts in Korea, China, Philippines, Malaysia and Thailand have eased some of the disparities but globally this issue has engendered debate. Korea has embarked on a programme of promoting rural tourism to the urban dwellers with a series of pilot schemes. However, it is noteworthy that the urban centres form the biggest catchment areas for DT in many Asian destinations.
Another aspect of the DT studies elaborated by the authors pertain to policies that impacted http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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There have been more and more public/private partnerships with the development of free market policies. NTAs and NTOs continue to take the responsibility of DT in Asia and the Pacific but private entrepreneurs now play a bigger role than in the past.
Summary of Country Profiles
Australia
Domestic Tourism in Australia Australian Government Department of Resources, Energy and Tourism
The importance of tourism as an export earner and as a source of employment has been duly recognized by the Australian government. Tourism contributes 2.5% of the GDP and around 8% of total export earnings with one in five employed in the sector (half a million persons). Administration, policies and budgets are therefore fully geared to tourism. Tourism Australia under the aegis of the Department of Resources, Energy and Tourism (RET) is fully responsible for all promotional activities with domestic tourism give an important position in the whole structure. Australia’s blueprint Tourism 2020 outlines the objectives and the targets for the future.
Australia has a solid economic and social base that enables the development and promotion of domestic tourism on par with international tourism. The well developed infrastructure despite vast distances to be travelled is a plus factor in favour of tourism. Likewise accommodation units are within the reach of domestic tourists whose disposable income permits them to take advantage of the entire range of products.
The socio-cultural data concerns the declining rate of growth of the population due to ageing, low fertility and increasing life expectancy all of which have a negative bearing on domestic tourism. Australia also has a high urban population (60%) ratio when compared to the rural areas which once again impacts on tourism. The holiday season apart from the Christmas vacations is governed to a great extent by the school vacations that are generally associated with domestic departures. Australia is a great sporting nation that attracts many domestic visitors to the various events.
Sustainable tourism development, particularly ‘green tourism’ is a field in which Australia has taken an initiative and is a forerunner. “Australia’s National Landscapes Programme is http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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the advanced statistical base available to the researcher that is supported by a well developed tourism satellite accounts system backed by regular household surveys.
Finally specific measures to develop and promote domestic tourism are outlined. This is approached from a supply and demand angle. Of particular interest is the following: “It is in this context that Tourism Australia launched No Leave, No Life on 30 March 2009. The programme is designed to equip employees and employers with tools to tackle annual leave stockpiling with flow-through benefits to the domestic tourism industry.”
Bhutan
Constraints for the Development of Domestic Tourism in Bhutan
Bhutan is a landlocked country situated between India and China, with a surface area of 38.3 thousand km2 with a population of 716 thousand (2011) of whom around 15% live in the Capital, Thimphu. Bhutan is a mountainous region in the Himalayas with high peaks and deep ravines dominating the topography. The harsh climate is another drawback where avalanches and mud slides are common. The biggest drawback to tourism development is transport: the country does not have a railway system, has only one major road from East to West and one airport (moves are under way to build more domestic airports and helipads). Mountaineering and trekking are the most popular nature based tourism activities where pack animals are used for transport. Bhutan has a rich history with a monarchical system of government. Buddhism (75%) and Hinduism (25%) are the major religions. Monasteries dot the landscape and cultural tourism is a major attraction. Spring is the major festival season.
From a tourism point of view, given the fragile bio-systems both natural as well as cultural that the country attempts to preserve, Bhutan is basically a country in transition. Despite some international celebrities making the headlines by visiting Bhutan tourism is still a relative luxury. The country received 300 visitors in 1974 that has risen to 64,000 in 2011. The compulsory entry fees base imposed on all international visitors have been a good source of revenue to the economy. International tourism is estimated to account for 10% of the GDP. The policy of ‘high-end, low-volume’ tourism is therefore paying dividends.
Given that 23% of the population live below the poverty line and 70% survive through subsistence farming, domestic tourism is not an activity within the reach of the average Bhutanese. Neither research nor statistics is available on domestic tourism in the country. It
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system of community development which in the long-run will pave the way for domestic tourism should be encouraged.
China
Domestic Tourism in China: Policy, Practice and Prospects Professor Guangrui Zhang
Travel and tourism account for 9.2% of the GDP and 7.7% of employment (2010). Given China’s surface area and population, two advantages that other countries can hardly match, the one providing rich resources, and the other the market, tourism remains a vital cog in China’s economy. In absolute terms the numbers are staggering:
“According to the statistics released by China National Tourism Administration, in the year of 2010 the number of domestic trips reached over 2.1 billion, generating CNY 1,260 billion as revenue. The number of overnight-stayed international arrivals was 55.66 million in total, generating over US$ 45.8 billion as foreign exchange earnings from tourism. Therefore, the grand tourism revenue for the year was over CNY 1,570 billion, accounting about 4% of the country’s GDP”.
Chinese tourism grew in 2 stages: from 1949 to 1978 the concentration was only on inbound tourism while in the next 30 years outbound and domestic tourism have been given due recognition.
Domestic tourism has been characterized by a period of spectacular growth in the last 2 decades. The causes and consequences of this rapid growth cannot be disassociated with the overall socio-economic developments of the country and its context articulated from a historical, economic, socio-cultural, and regional development perspectives. In terms of average spend/person it has remained rather low but this has been supplemented by an ever growing broad base. Policy evolution has followed general economic and political trends. The policy changes, incentives, product development (budget hotels, transport facilities especially on railways), specific markets (family, young travellers), and specific products (rural, cultural event, frontier tourism) have all been oriented in the context of the world financial crisis and its consequent effect on the Chinese economy. China decided on a path of stimulating domestic consumption and domestic tourism has been given top
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The impacts of domestic tourism in the economic surge by providing jobs, redressing the rural exodus, and revitalizing the economy are on par with the overall economic, social,
20 Executive Summary
cultural and political goals of the Government. Concrete measures have been implemented to facilitate the task of which the introduction of the 5 day week in 1995 followed by the long holiday system in 1999, much ahead of some of China’s neighbours, are noteworthy. The 11 day holiday period effectively enabled the Chinese to take a 3 week break during the ‘Golden Week’ by combining it with other national holidays. This, however, is not without its negative impacts since congestion, pressure on transport and accommodation and an overall stagnancy of the economy is the flip side of the coin. China has also experimented with vouchers and incentives to stimulate domestic tourism amongst certain disenfranchised social groups of low income, a measure that has been put to good effect in Korea, and has a parallel in France. The future of domestic tourism in China is inalienably linked to the success of its economic policies that aims at reducing the urban/rural imbalance and to provide incentives to the latter to reduce excessive exodus to the towns and cities and also provide better livelihood thereby safeguarding jobs and income.
Travel Experience and Life Satisfaction through Mobility – A Constructivist Perspective on Domestic Tourism in China Professor Honggen Xiao
This study “contextualized within specific settings and articulated from their own perspectives, accounts from backpacker narratives and auto tourists’ lived experiences have lent to discussions on travel experience, experiential learning through travel, auto tourism and mobility, family vacations and togetherness, and life satisfaction or quality of life, which are characteristic of contemporary Chinese society within which domestic tourism is simmered and acts as an agent, along with other forces, for social cultural change currently occurring in China”.
Based partly on primary research the study is evocative of the evolution of Chinese tourism, comparable to early experiences in Western society at a time backpackers or auto tourists ventured into an adventure that today has paved the way for a more stable and structured component of tourism. The narratives give an insight into various inter-related aspects of tourism such as transport, accommodation, safety and security, and community relationships. Though the volume may be limited the potential is large since the market, especially amongst the youth, is vast in China. It must also be remembered that there is a disparity between the developed Eastern coastal belt and the West of the country and individual travel in all its forms is fast replacing package tours that offer a means of http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Analyzing the Domestic Tourist Markets of China: A Case Study of Guilin Professor Jigang Bao and and Dr Yueying Xu
Domestic tourism in China is experiencing fast growth and its contributions to the nation’s economic and social development are significant. By a case study approach, the study has chosen Guilin of the Guangxi Zhuang Autonomous Region in Southwest China as an example to investigate the development of domestic tourism in China, with a focus on examining the characteristics and changes in Guilin’s domestic tourist markets during the decade 1999 to 2008. The background and the driving forces for Guilin’s domestic tourism development are analyzed and possible explanations on the changes in tourist origins are provided. The impacts that Guilin domestic tourism development has on the destination and its communities are also discussed. The study makes use of both primary and secondary data. As one of the earliest and most representative tourist destinations in the nation, Guilin’s experience in domestic tourism development can provide some insights of what China’s domestic tourism has gone through and how tourism interacts with the country’s fast economic and social development.
India
Domestic Tourism in India: The Industry, Ground Reality, and Policy Framework Professor Kiran Shinde
The study analyzes the historical evolution, regional variations and policy of Indian tourism in general and domestic tourism in particular within the various economic plans (Five Year, Ten Year Plans) of the Indian Government. The evolution from a planned to liberalized economy that followed world trends in the past decade of which India has been a beneficiary and a leading protagonist recently has had an impact on tourism with lesser state controls and more room for the private sector. This has conversely facilitated the emergence of a robust middle class (estimated around 200 million persons) who constitute the base for the development of domestic tourism. Consequently there is a noticeable shift from the traditional domestic tourism trips that were the monopoly of the masses in the past to one that is modern and in keeping with the aspirations of a rising wealthy middle class. This leisure based demand is dependent on services that require a different set of policies and products. However, the importance of pilgrimages and religious travel cannot be undermined as this age old tradition is part and parcel of the Indian ethos. Added to this must be included the category of people who travel to visit friends and relatives (VFR) where
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Since precise details of the flow of domestic tourism is not readily available from first hand recent sources it has been concluded from the various surveys and research undertaken in
22 Executive Summary
the past by public and private institutes that the domestic tourism flows are ten times that of international arrivals. The theme of the study is based on how the existing policy framework copes with this reality and the need for adaptation to keep pace with evolving trends.
The accommodation sector has seen a growth in hotels and motels catering to international tourists but these also serve domestic tourists. On the other hand it is still the informal non- star hotels that constitute the ‘bread and butter’ of domestic tourists. Where the transport sector in concerned the growth of low-cost carriers in India is a boon to the domestic market but road and rail continue to dominate domestic tourism. Affluence has also permitted the average Indian to car ownership that again facilitates travel.
In conclusion as the author states “In exploring possible answers to questions related to domestic tourism, this paper focuses on two aspects: the structure of domestic tourism and how it features within the existing policy framework. While doing so, it attempts to highlights area where the policy has been effective, as well as identify the shortcomings that contribute to uneven growth and the less than desired levels of achievements in the promotion of domestic tourism”
Indonesia
Domestic Tourism in Indonesia Dr Myra P. Gunawan and Ms Yani Adriani
Indonesia is the world’s largest archipelagic country with 17,500 islands in a land area of almost 2 million km2 and a population of 237 million (4th in the world). 57% of the population is concentrated in 6, 8% of the surface area in Java. Composed of diverse indigenous ethnic and cultural groups the country has the biggest Muslim population of any country in the world. These factors have an enormous bearing on domestic tourism that has increased rapidly in the past 2 decades when the country was affected by a series of natural and man-made catastrophes. Indonesian international tourist arrivals reached a peak in 1997 but despite the setbacks the industry survived the darkest period through its resilience that prompted the authorities to invest heavily on domestic tourism to counter balance the negative effects of the loss in foreign exchange. This policy change enabled the industry to make a significant contribution to the GDP and most importantly maintain jobs and sustain livelihoods.
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domestic tourism was recognized the authorities embarked on a special promotional campaign aimed at enticing the locals to discover their own country – “pariwisata nusantara”. The net result has been that “within the 30 year period (1981-2011) the number (of domestic tourists) has increased at an accelerating pace from a rough estimate of about 44 million into a magnitude of about three-fold. The numbers of trips made accelerated at an even greater pace from about 51 million to about five-fold”.
50% of Indonesia’s population is under 25 years hence the youth market presents an opportunity and a challenge to planners and policy makers to tap this lucrative source. On the other hand increase in income and living standards has resulted in a wealthy middle- class emerging recently whose exigencies in terms of products and services are not second to those of international tourists. Accessibility through the introduction of low cost budget airlines (the country disposes 237airports) has facilitated travel in this vast country that has been beneficial to domestic tourism. The accelerated growth of car and motorcycle ownership (8.85 million and 65 million respectively) has provided greater mobility influencing intensity of travel and reach as well.
According to the national household survey of 2010, the total travelling population was estimated at 122 million persons and the total trips at 198 million. The survey also noted that 54% stayed with friends and relatives (VFR) and 71% in non-classified accommodation units. The income generated from DT accounted for 60% of the total income from tourism expenditure. A case study of Bali underlines the importance of DT to the island whose image was totally submerged by its international notoriety that suffered drastically following the Bali bombings. “For the first time in its history Bali tourism was faced with the fact of how fragile the sector is from externalities never anticipated nor imagined”. Thanks to domestic tourism Bali was able minimize the economic and social losses.
Iran
Domestic Tourism in Iran Dr Zahed Ghaderi
The study contains both primary (surveys undertaken directly by the author) and secondary research on Iran’s domestic tourism. Iran is a very rich destination from the point of view of its cultural heritage as it has a very old civilization and its natural assets that are relatively less known: Damavand summit at 5,671 m altitude and the Loot and Central deserts,
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24 Executive Summary
Modern tourism in Iran dates back to the creation of the Jalbe-Sayahan Bureau in the Ministry of Interior 75 years ago which was responsible for the establishment of accommodation units along the Caspian sea amongst other tourism activities. However, Iran had been the victim of a long drawn out war with Iraq that depleted her resources and political maneuvers that have destabilized international tourism – placed after the 53rd nation in international arrivals in 2011 with 3.1 million visitors does not seem to do justice to its heritage.
The population of Iran is estimated to be around 75 million with an urban rural ratio of 3:1. The human resources are therefore available for a healthy growth of its domestic tourism component that has no doubt benefitted from the relatively poor international market. Iran’s cultural heritage is strongly liked to its festivals of which Nowrooz or the dawn of spring in March is widely celebrated throughout the country. It attracts millions of visitors and in its wake come a number of problems of carrying capacity related to congestion, accommodation and transport.
Various household surveys including one carried out by the author in September 2009 supplement the relatively weak statistical data on domestic tourism. From this and other surveys it transpires that VFR constitutes 51% of all visits while leisure and pilgrimage are equally important. Being the leading Shiite state in the world there are numerous pilgrimage sites that attract many domestic visitors. It is estimated that domestic tourism spend is over 80% and that total employment (direct and indirect) in the tourism sector accounts for 1.2 million, i.e. 5,6% of the total work force on Iran.
While Iran has a good network of roads, railways, and airlines, the political situation has led to a lack of maintenance that has had certain negative effects especially in safety and security of its carriers. 70% of the domestic tourist transport, though, is by private vehicles, with the FIT market accounting for 54% of sales. Policy changes, more investment and a gradual easing of Iran’s isolation will boost its tourism market both international as well as domestic. The study has concluded with a set of very detailed recommendations.
Managing “Nowruz” Holidays, the Case of Fars Province, Iran Dr Hamid Zargham
Domestic tourism in Iran has been witnessing a growth rate caused by increase in urbanization, growth in numbers of Iranian families with high disposable income, and the proliferation of private vehicles over the period 1997 to 2011. Domestic demand has http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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from 19 million in 2002 to 149 million in 2011, generating a cash flow of more than US$ 3.5 billion. As a result of this high travel demand, government authorities encountered serious challenges such as: 1. Supply of accommodation services; 2. the need for police, security and emergency medical assistance; 3. provision of tourist guiding and information services; 4. liquidity management; 5. overcharging and supply monitoring and; 6. environmental damage and pollution.
In order to administer wellbeing and comfort of the travellers the government has established facilities headquarters at national, provincial, and district levels. This content analysis study briefly reviews the expansion of domestic tourism in Fars province and summarizes important contributing factors. Through investigating experiences and achievements in management of domestic tours during New Year’s holiday, the study shows that “Nowruz tourism” makes a significant contribution in promoting regional economic growth, improving local economic structures, driving the development of related industries, and enhancing employment and activating domestic demands.
A Case Study of Best Practice in Educational Tourism: Student Tours and Visits in Iran Mr Masih Sharif
The study underlines the importance placed by Iran on educational student tours that are supported by the state and is a part of the curriculum where theory and practice are closely interwoven. These tours are well structured and widely spread.
Domestic tourism in Iran has been the main beneficiary of student educational tours. From a socio-economic point of view these tours are extremely significant in leading to more understanding not to mention the direct and indirect economic impacts. Another aspect is the redressing of urban/rural imbalance.
While the state plays the leading role as policy maker and chief benefactor associations have been active in cooperating with the department of education of Iran to complement these activities and a case study has been made of the Far’Avaran Association. Established in 2004 based in Tehran, the Far’Avaran Association was created by a group of tourism graduates and tour guides aiming for cultural and tourism development which mainly deals http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
26 Executive Summary
Japan
Domestic Tourism in Japan Mr Tomohiko Watanabe
Japan’s dramatic post-war redevelopment and economic recovery has placed it on par with Western countries with the GDP and per capita income at a level where social inequalities prevalent in other Asia societies are minimal. An egalitarian wealthy middle-class, therefore, dominates society where domestic tourism has found its rightful place. The rapid economic growth in the 1960s saw an improvement in infrastructure, particularly transport, that benefitted tourism. While income and consumption levels increased steadily until the 1990s so did domestic tourism. However, growth has been sluggish thereafter and a large number of internal destinations, facilities, products, and accommodation units have failed to keep pace with new challenges brought about mainly by the technological revolution. A very interesting case in point is the Japanese hot springs (more than 3,000) offering accommodation and indoor facilities to domestic visitors. The traditional Japanese package tours have been replaced by FITs and the owners of the units have found it difficult to readapt to the changing market conditions. This is but one symptomatic example of logistical problems facing the industry.
The market scale of domestic tourism is evident from the volume of the traffic. It is estimated that there are 200 million domestic visitors as against 17 million outbound and 9 million inbound visitors. Japanese policy has also seen a change in direction with the establishment of the Japan Tourism Agency in 2008. Tourism has been given priority being placed as one of the pillars of the 21st century with domestic tourism identified as the motor of growth. One of the aims of the 5 Year Plan was to increase the length of the Japanese domestic trip by one night from the 2.5 average to 4 nights. Festivals are a feature of Japanese domestic tourism. Of these the Nebuska festival, Hakat Gion Yamakas, and Sapparo Maburi attract 3 million visitors for each event.
The Japanese accommodation system draws on both the modern and the traditional with Ryokans, Minsyyuku and Syukubo (temple stays) being popular amongst the local population. These motels and guest houses in traditional Japanese style cater to the domestic tourism clientele who find them to be affordable, clean and comfortable. Unlike other Asian destinations the Japanese have a ‘ready made’ accommodation set-up that meets their needs. The transport system is one of the most modern in the world with Japanese trains and vehicles as modern as anything to be offered in the West. Curiously,
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Japan has elaborated a fairly comprehensive market segmentation of its domestic travellers with the elderly, retired, baby boomer generation, small groups and disabled travellers forming part of the system. Tour Operators and Travel Agents (10,200 registered companies) face stiff challenge from the internet. Modern technology has penetrated even to the senior citizens and FITS are steadily replacing the package tours for which the Japanese had a predisposition. Security remains one of the major concerns of the Japanese especially in the wake of the tsunami and its consequent impact on nuclear plants. Sustainable tourism development does not have the same importance as in other Asian destinations since sustainability is probably an inbuilt cult of the Japanese.
Korea, Republic of
Domestic Tourism in the Republic of Korea Dr Kang Wook Lee
The study gives an overall picture of the tourism industry of Korea that has kept pace with the rapid expansion of the Korean economy which registered a growth of 6.2 % in 2010, marked by a doubling of the per capita income in a decade (2000 to 2010). Consequently, domestic tourism has been the beneficiary of the new-found wealth of the people but it has also received competition from outbound tourism where there is trade deficit with inbound arrivals (9.7 million arrivals as opposed to 12.7 million departures). It has also led to income polarization leading to inequalities that has to be addressed in the socio-cultural context. Another outcome of the economic boom has been an ageing and declining population with its repercussions on domestic tourism.
This study places an emphasis on the revitalization of the regional economy, the management of crisis in tourism-related industries, sustainable tourism development, and community empowerment. Best practices of domestic tourism in Republic of Korea have been selected and analyzed, based upon the opinions of tourism experts. Koreans have also profited from the technological revolution where the country is in the forefront of new products that have been of immense value to domestic tourism, e.g. Jejumall online website that provides one-stop service to search for information on the Jeju area and the Tourtalkers, an innovative interactive kit.
This paper proposes an expansion in leisure time and a reform to the system to ease the financial burden for tourism-market participants, based on best practices in the revitalization
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28 Executive Summary
the Republic of Korea, the paper proposes to provide efficient tourism information service in connection with the tourism information system.
Case Study of Social Tourism Policies in Korea Dr Sun Jin Ji and Dr Jae Geul Kim
Despite the growing economic wealth of the country the demand for domestic tourism has declined in the past 3 years. The main reasons attributed have been a lack of time, financial considerations, destination attractiveness and health. Accordingly the government of Korea has paid more attention to reinvigorate domestic tourism through social policies and measures such as the ‘tourism voucher’, begun in 2005 and suspended from 2007 to 2009 but reintroduced once more thereafter, ‘inviting travel’ and the ‘tourism coupon’ each with its own specificities target groups and mode of operation. The paper also gives the opinions of beneficiaries of the above in the form of primary research through interviews.
The social tourism policies have been very successful in giving an opportunity to travel to the disenfranchised and the disabled but improvements are still deemed to be necessary for the system to be fully functional. The total number of official persons living below the poverty line is approx. 1,530,000 but only 20,000 people, barely 1.5% of the total, benefited from the system. The system also needs active marketing for the Korean population, especially the lower strata who really need the benefits, to fully understand its mechanisms and its application. Finally, Korea posted a tourism balance of payment deficit of around US$ 2.7 billion in 2011. The social tourism programme that includes travel vouchers and travel coupons could be one of many alternatives to reduce the tourism deficit by vitalizing domestic tourism.
Case Study of Rural Tourism in Korea Mr Hyoung Du Choi and Mr Hyun Seok Choi
The study points out to a decline in domestic tourism in the face of increased competition from outbound visitors and the ensuing policy decision to reduce socio-cultural differences between the urban and the rural areas by giving support to the latter to increase their income. Development of rural tourism also has other positives such as meeting the new demand of those tired of mass tourism, preventing leakages (profit that accrue to multinational corporations and foreign investors) and adverse environmental effects. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Korean rural tourism dates back to 1984 when the pilot projects of farms were set up which grew to 277 by 2007. The establishment of the 5 day work week greatly encouraged domestic rural tourism as people had more spare time and income. Another factor
29 Domestic Tourism in Asia and the Pacific
influencing rural tourism was nostalgia for country life which explains the large number of repeat visitors. The study has taken 3 villages as case studies, each with its distinctive rural characteristic, and elaborated on the benefits to be gained to the community and the sector through the multiplier effect.
Malaysia
Domestic Tourism in Malaysia Information based on the Department of Statistics of Malaysia
Malaysia has made a rapid and spectacular development in tourism, especially in the past 2 decades and now can claim to be the leader in this field in Southeast Asia. Political stability, economic progress and social harmony in a relatively peaceful atmosphere have helped the country to surge ahead with international arrivals surpassing 25 million visitors in 2011. The two major events, one natural (SARS and AHI), and the other the financial crisis were overcome without major scars. A resilient tourism industry has been supported by an aggressive marketing and promotional campaign that has benefitted both international as well as domestic tourism. The tourism satellite accounts and domestic household surveys have been systematically developed giving statistics that are reliable, up to date, and detailed in content.
A sample of the survey findings of 2010 are enumerated below: 1. The total number of domestic tourists was estimated at 115.5 million. 2. Domestic tourism is governed by seasonality associated with the holiday season of which the Islamic “Id ul – Fitr” (Hari Raya), and the Chinese New Year are critical periods. The dates of the former tend to vary each year. 3. On an average almost 50% of Malaysians aged over 15 years made a domestic trip. 4. Urban expenditures account for 72.3% and the rural component, 27.7%. 5. The average length of stay was 2.58 days. 6. 84% of domestic tourists stayed with friends and relatives but the main motivation of travel of VFR fell to 42.6% with shopping accounting for 32.3% and leisure to 18.2%. 7. Details of household income, accommodation, transport, areas visited, gender, age group, occupation, etc are given in detail.
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30 Executive Summary
A Case Study of Domestic Tourism – Malaysia Evidence Focusing on the Role of Transportation Dr Hossein Nezakati and Mr Yousef Keshavarz
The study gives a general overview of the historical evolution of Malaysian tourism with specific references to the role of transportation in domestic tourism. It draws heavily on the findings of the 2010 household survey supplemented by conceptual theories applicable to Malaysian tourism.
Mongolia
Domestic Tourism in Mongolia Dr Amartuvshin Dorjsuren
The chapter presents the growth of domestic tourism in Mongolia during the communist or socialist period (1921−1990). Thereafter, contemporary trends in native tourism are examined with reference to political, economic, cultural and geographical factors. The second half of the chapter empirically explores the positive and negative consequences of increasing domestic tourism in Mongolia. Mongolia occupies 1.566 thousand km2 but is inhabited by less than 3 million people, of whom 45% live in the capital city of Ulaanbaatar. The vast country has contrasting topography ranging from the Gobi desert to the Siberian tundra and consequently harsh climatic conditions. The population that is basically nomadic has very close family bonds and this has played a very important role in domestic tourism since visiting friends and relatives is almost sacred. International tourism is limited with the country having received less than half a million tourists in 2011. In its 1995 Tourism Development Guidelines, the Government of Mongolia articulated one of its development objectives as achieving “ecologically oriented tourism sector development in conformity with the sustainable economic development conception". In recent years, the Golden Eagle Festival, the Ice Festival and the Camel Festival area becoming important events that particularly attract winter tourists to Mongolia.
The geography of the country precludes transportation facilities as are common in other densely populated destinations which is a constraint to domestic tourism development (55% of the traffic is carried by rail) but within the available infrastructure a very good accommodation system has evolved dating to the socialist period in the form of spas, sanatoriums and holidays camps. Spas and sanatoriums though are usually located at
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children. These camps served for school children during their summer holiday − mainly between June and September. School groups usually spent 14 days at the camp, where they participated in various themed cultural (i.e. talent contents including singing, dancing and creative writing), sporting and educational activities. It is clear that children's camps served as holiday centres for children to make friends and learn something new or uncover their talents, as they still are today. Another feature is camping (ger). In recent years, Mongolians share the camping facilities of the international tourists. Although the ger camps began to be established after the 1990’s, it was particularly in the last five years that the majority of the ger camp developed in Mongolia.
With the liberalization of the economy Mongolia is placing sufficient stress on an equitable and sustainable domestic tourism structure which is deemed to be important to maintain socio-cultural values of a country in transition. Mongolia has also a well developed social tourism structure particularly among three main population groups of pensioners, people with disabilities including children and children from disadvantaged background. The study also carries a short incursion into the impact of domestic tourism in the traditional nomadic lifestyles of the people.
New Zealand
Domestic Tourism Market Segmentation Information based on Ministry of Tourism, New Zealand
New Zealand Tourism has been in the forefront of domestic travel surveys (DTS) in Asia and the Pacific, having carried out DTS in a systematic way since 1983. Under Objectives it was noted that the purpose of the Domestic Travel Survey (DTS) was to provide accurate, quarterly information on the number and type of trip, characteristics, behaviour and expenditure of domestic visitors.
The domestic tourism market segmentation report presents the findings of the 2009 Domestic Tourism Research project undertaken for the Ministry of Tourism on behalf of New Zealand’s wider tourism sector and key industry stakeholders. The research that was completed by a consortium comprising Angus & Associates, The Knowledge Warehouse and Tourism Resource Consultants opted for a market segmentation analysis that “identified eight groups of domestic travel consumers – each different in its demographic and psychographic profile, its travel behaviour and its travel needs, and each calling for a
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32 Executive Summary
Pakistan
Domestic Tourism in Pakistan Mr Zafarullah Siddiqui
Pakistan’s creation as a modern State dates back to 1947 but being situated in the Indus valley, renowned for its early civilization, and bordered by the Himalayan mountain range the country has such a vast natural and cultural heritage that has been under-exploited for tourism. The reason probably lies in the political context of its birth as a nation and the trials and tribulations it has undergone thereafter. A decade since 9/11 after which international tourism saw a dramatic drop, domestic tourism has come to the fore in Pakistan .Pakistan registered 854,000 international arrivals in 2009 and 56% mentioned that they were coming to visit friends and relatives (VFR). This shows that they were mostly expatriates with foreign nationality. In other words, if not for the frontier formalities they would be considered as domestic visitors.
Reliable statistics do not exist and the last household dates back to over a decade. Some of the findings are, nevertheless, probably valid even today: the most popular form of transport is by road (bus: 48%, car: 20%), average duration of stay less than 3 days (75%). But the hotels/motels figure of a 91% occupancy of all accommodation units probably does not take into account the VFR.
Pakistan is a federal State with 5 major provinces each of which has its own autonomy and tourist assets. The dismantling of the Federal Ministry of Tourism in April 2011 and the subsequent handing over of the tourism activities to the provincial governments has had an adverse effect on Pakistan tourism. Thus Pakistan tourism seems to be in the throes of a period of transition on policy matters at the moment.
Pakistan’s limited wealthy middle-class that had provided the base for leisure tourism especially during the peak summer months when there was a tendency for people to move to the mountain resorts that had a cooler climate. This was the base for domestic leisure tourism but political events have disrupted this source. There is hope that with more stability, improvement of facilities and a better policy, domestic tourism in Pakistan can flourish since the destination has the assets and a ready market.
“Despite tremendous tourism potential, Pakistan does not enjoy favourable tourist image in the global travel industry. Realizing the fact that it may be an
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economic development and a source to create national harmony and also to benefit underutilized tourist infrastructure”.
Philippines
Domestic Tourism in the Philippines Dr Miguela M. Mena
With a rich tropical and cultural heritage, hospitable people, and its strategic geographical position in Asia, the Philippines is ideally suited to tourism. Furthermore, being an archipelagic nation it possesses more than 7,100 islands giving it a natural diversity that coupled with a population of over 88 million persons enables it to play an important role in domestic tourism.
The study traces the structure and policies of Philippine tourism regulated at the national level and led by the Department of Tourism (DOT). Domestic tourism has been recognized as a significant sector in the country’s tourism development programme. For example, the DOT supervises a number of attached agencies that include the Philippine Retirement Authority which facilitates ‘retirement tourism’. Domestic tourism statistics are largely dependent on the household surveys carried out in 2005 and 2009 which gives a good insight into the evolution of the sector over the years. The study further elaborates on the various products, infrastructure, and the cultural activities, enumerating the many festivals of the various ethnic groups of the country. Special mention must be made of the unique position held by the Philippine telecommunications system that is reputed in Asia. The population has access to both the internet as well as mobile phones. The DOT has consequently taken advantage of the social media to boost its domestic tourism campaign “It’s more fun in the Philippines”.
The study concludes that “[…] the demographic changes, in combination with their travel motivations, will have important implications on lifestyle, travel preferences and travel behaviour of Philippine residents. Nowadays, more residents of the Philippines have the necessary leisure time and discretionary income to allocate to touristic activities which means they will have greater opportunity as well as capability to travel domestically”.
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34 Executive Summary
Domestic Tourism’s Role in Local Economic Development Ms Maria Cherry Lyn S. Salazar-Rodolfo
“This report examines the role of domestic tourism in the development of the Philippine tourism industry, specifically of select local destinations, with focus on Puerto Princesa City in the Province of Palawan, the location of the Puerto Princesa Underground River (PPUR), voted as one of the new seven wonders of the world. It provides rationale to the need for investments in tourism statistics in tourism-oriented destinations, in aid of policy, business and community planning towards sustainable development. It identifies the enabling policies, strategies and action programmes that have supported the growth of destinations and the challenges to sustainability, particularly in relation to the domestic tourism market.”
Tourism has been recognized as a major industry by virtue of the Tourism Act of 2009 which, amongst other considerations placed special emphasis on the collection, analysis and dissemination of tourism data. Tourism statistics have been supplemented by two household surveys, that of 2005 and the latest of 2010. An interesting finding to emerge from the 2 surveys is that of purpose of visit. The former gave VFR as the main purpose while in that of 2010 pleasure/vacations had overtaken it. This could be a reflection of an evolving society and greater affluence.
Four conceptualized factors have been enumerated to study the domestic tourism market a little more in detail: a) supply – the products on offer are far greater and of a better quality than in the past. More public, private sector participation has led to a good offer in accommodation units; b) improved market conditions have emerged in the domestic tourism offer – in the past 5 years a number of new products and services. Migrant workers have also emerged as a major domestic tourism component; c) enhanced capacity – liberalization of the domestic air transport industry in 1995 paved the way in domestic flights at reduced rates. There was also a concerted policy by the Central government to facilitate domestic tourism travel which has borne fruit through the emergence of low cost carriers and the investment on road transport; d) enabling institutions, especially the 1991 act to devolve tourism to the local government units gave a greater share of the responsibilities to the institutions worked at grass root levels whereby communities became stronger in terms of organizing and taking part in the development process.
The case of Puerto Princesa City is discussed in detail as a very relevant case study in the domain of domestic tourism. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
35 Domestic Tourism in Asia and the Pacific
Sri Lanka
Domestic Tourism in Sri Lanka Dr Nizam Lantra
The establishment of a national plan for tourism development in 1966 made provision for domestic tourism in a limited way with the identification of accommodation units within the various resorts due for construction. Thus, while international tourism was the main focus, domestic tourism was not ignored. This concerted effort to recognize and integrate domestic tourism into mainstream tourism was visible in the creation of a Community Relations Unit within the Tourist Board when it was first created in 1968.
Domestic tourism in Sri Lanka existed long before the advent of modern tourism, for example, large halls for resting and sleeping purposes, commonly called “Ambalamas” which still continue to function wherever pilgrimages are common, supplement the accommodation units. Though precise statistics are not available it is estimated that 7 million domestic visitors travel to all parts of the country during the year. This is in contrast to the less than a million foreign visitors. Though Sri Lanka is the home to Theravada Buddhism, other religious denominations (Hinduism, Christianity and Islam) have a rightful place within society. Sri Lanka probably has the largest number public holidays of any country in the world which encourages domestic tourism as short breaks become frequent.
A striking feature of DT in Sri Lanka is the rising middle class that emerged with the opening up of the economy from a protectionist to a liberal one in the nineteen seventies. GDP and per capita increases enabled the affluent to make use of tourism facilities that were basically developed for international tourism. Two decades of internal ethnic strife led to a stagnation of foreign visitors but fortunately domestic tourists came to the rescue of hoteliers and the industry. 26% of guest nights in registered hotels and 74% in informal accommodation units are catered to by domestic visitors. In the light of the importance of domestic tourism, the Sri Lanka Tourist Board introduced a domestic tourism programme in its structure with a fully fledged vision and mission statement.
Following the conclusion of the war with the separatist movement in 2009, Sri Lanka has seen a resurgence of its tourism both international as well as domestic. A sense of curiosity has overtaken security concerns of the past and there has been movement from the populated South to the earlier inaccessible North and East of the country by domestic visitors who had a tendency to confine themselves to the cultural sites in the past. At the
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36 Executive Summary
Domestic tourism has been saddled by the seasonality factor and congestion due to the concentration of holidays during certain peak periods such as April/May corresponding to the Sinhala/Tamil New Year and Wesak (traditional Buddhist holiday), and to school vacations. In this respect a parallel can be drawn with other Asian destinations that face the same dilemma.
Sri Lanka requires a strong tourism satellite accounts system to monitor tourist and economic flows. A national and provincial household survey is also long overdue. The carrying capacity of certain domestic tourism sites need to be ascertained if they are to be sustainably developed and maintained. A number of recommendations has been made that could facilitate the future of domestic tourism in Sri Lanka. One such unique but vital recommendation is the printing of an accommodation guide for local visitors that is long overdue.
Thailand
Some Reflections on Thai Domestic Tourism Dr Therdchai (Ted) Choibamroong
Thailand has long been a pace setter and a beacon in Asian tourism that was temporarily disrupted by political upheavals in 2008 and 2009 and wide-scale floods in early 2011 affecting both its image as well as international tourist arrivals. However, the scale of these impacts on its domestic tourism market is difficult to gauge since certain sectors and regions seem to have benefited from the loss elsewhere.
The study analyses the regional variations placing wide attention on the efforts made by the Ministry of Tourism and the Tourism Authority of Thailand (TAT) to stem the negative impacts. Thailand’s tourism accounts for 9% of the country’s GDP with an estimated 1.9 million persons employed directly and indirectly in the sector. Domestic tourism of Thailand in 2010 generated a revenue of THB 402,574.39 million which was a considerable increase over that of 2009. It is encouraging that domestic tourism expenses increased by 12.71% in 2010 compared to 2009. Another interesting feature has been the growth in the outbound tourism market that shows the increasing affluence of the wealthy Thai through a growing middle-class who have been attracted to neighbouring Asian destinations in larger numbers. This has also been facilitated by the advent of low cost carriers making flights cheaper. These factors have not gone un-noticed by TAT that embarked on an aggressive policy of
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The lack of a good tourism satellite account system (TSA) makes it difficult to calculate the economic fallouts of Thai tourism in general and domestic tourism in particular and the household surveys are still in a nascent stage. The study reports that the 3rd and 4th quarter results of the recovery following the early year floods are extremely satisfactory.
Case Study of Community Based Tourism in Thailand Ms Potjana Suansri and Mr Peter Richards
During the past decade, domestic tourism in Thailand has become increasingly important. According to the Department of Tourism, the Ministry of Tourism and Sports of Thailand, in 2010, almost 80% of trips in Thailand were taken by Thais, accounting for 44.5% of Thailand’s total tourism revenue (THB 402,574.39 million). This study confirms that domestic tourism is evolving and expanding well beyond traditional, well known destinations. Important trends including family travel; an intense promotion of and demand for trendy new destinations; nostalgia for traditional Thai life; desire to escape the city into nature; IT and social networking and self driving trips are motivating a diverse and growing number of Thais to explore further into rural Thailand and visit local communities (CBT-I 2010, TAT 2010). Government policies have also successfully encouraged domestic tourism. Public funding for professional development excursions, a mandatory ‘local curriculum’ which requires Thai children to learn traditional knowledge at school, and growth in university field trips are further stimulating domestic visits to Thai CBT destinations.
CBT destinations which offer a warm welcome, pleasant climate, tasty food, clean and safe services, unusual highlights, fun activities, and opportunities to study local community development achievements are best positioned to attract a diversity of Thai visitors. Thais are already familiar with Thai culture, so cultural activities need to go beyond cultural exchange which would satisfy foreign guests. Most Thais travel on short breaks, during public holidays, so there is great opportunity to develop CBT programmes for domestic visitors to participate in traditional, seasonal, local festivals. Communities successfully offering such services and experiences are attracting Thais travelling for pleasure, as well as professionals and students participating in professional development and academic study tours. The study shows that many communities offering CBT programmes to Thai visitors are currently earning significant income, as well as funds to support conservation, social and cultural initiatives. Compared to welcoming foreign tourists, communities are experiencing different advantages and challenges. The main advantages are that community members have not needed to rely on the English language, nor to be experts at marketing through tour operators and other typical tourism distribution channels. Community leaders http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
A key lesson is the importance of good preparation to develop quality CBT services which are tailored and appropriate to the specific needs and expectations of domestic tourists.
38 Executive Summary
These needs are different from foreign tourists. Therefore, CBT product planning and development cannot rely on standard CBT programmes, developed for foreign visitors. The values of domestic tourists are also an important factor. For example, Thai people place special value on Buddhist merit-making and buying souvenirs for family members, so such activities would add more value for CBT targeting domestic tourists than for communities targeting foreign visitors.
Vietnam
Domestic Tourism in Vietnam Mr Hoang Dao Bao Cam
Vietnam’s geographical and political position has greatly influenced its tourism at international and domestic levels. The study places emphasis on these two aspects in the context of the historical evolution of tourism in Vietnam. Geographically Vietnam is a longitudinal country with the length from North to south extending over 2000 km. Mountains and hills account for three quarters of the surface area while the coastline extends to over 3,200 km with thousands of islands 80% of Vietnam’s tourism is concentrated in the coastal areas with beaches and the sea playing a preponderant role. The young and dynamic population of over 86 million constitutes the biggest domestic tourism resource. “The two largest catchment areas are Hanoi and Hochiminh city with a population of 6,562,000 and 7,397,000 respectively. These two cities have large population with high spending ability; also they are surrounded by "rich" provinces. They also serve as national gateways and transportation hubs,” notes the study.
Politically, Vietnam has gone through a transitional period after years of colonization, war, and a ‘closed’ society, before the opening up of the country to a free market economy in 1992. Tourism has grown rapidly in the past 15 years with international visitors reaching the 5 million mark in 2010. Since the 1960s until the early 1990s domestic tourism played a bigger role. Organized through the Vietnam Labour Union, domestic tourism at that period was controlled by the State, but with the ensuing liberalization of the country it has grown at the rate of 10% continuously from 11 million in 2000 to 28 million in 2010.
A domestic household survey carried out by the government’s statistical department in 2009 supplemented by another private survey using a smaller base has given some valuable data on domestic tourism in Vietnam. Some salient characteristics of domestic tourism in
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39 Domestic Tourism in Asia and the Pacific
reduction of the working hours from 48 to 40 hours per week in 1999 allied to the reorganization of public holidays has also had a profound effect on domestic tourism. The accommodation for domestic tourism is dominated by the informal sector of guest houses ‘mini’ hotels, rooms in homes, and temple stays.
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Introduction ______
The domestic tourism (DT) study was based on a concept note developed by the Regional Programme for Asia and the Pacific of the World Tourism Organization (UNWTO) in September 2011 to embark upon a research on domestic tourism in Asia and the Pacific. Contributions were made from academia, public officials and tourism professionals. These findings form the basis of the present publication.
Background
Tourism is one of the world’s largest and fastest growing sectors. Many countries consider tourism as a growth engine for present and future generations due to its socio-economic contribution. However, the tourism industry is facing a very challenging moment now as a result of natural and man-made disasters, economic crises and geopolitical tensions. In order to overcome its recession, while international tourism has been the subject of relevant efforts to analyse its economic importance and characteristics, domestic tourism remains the neglected and under-researched element in the analysis of tourism’s total impact. In reality, however, domestic tourism plays a significant role in the sector’s resilience, especially in times of crisis by sustaining services and jobs, offsetting the loss of inbound tourism and reducing the disparity amongst regions’ development. Several countries in Asia and the Pacific started to shift their focus to domestic tourism and the need on how to measure it has come to the fore.
UNWTO therefore decided to undertake domestic tourism research which is becoming one of the priority areas in its programme of work (POW). The purpose of this study is to provide a real picture of domestic tourism through the research of policies, strategies and resilient capacity so that it can enhance the awareness of domestic tourism as a crucial contributor to the socio-economic development of the country. The outcome of this study is expected to serve as practical guidelines for a more holistic and sustainable development of domestic tourism in the Asia and Pacific region. Moreover, it will be used as a reference for interested http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
The responses to the call for the contribution to the domestic tourism study based on a detailed set of Terms of Reference (ToR) were received from authors and public officials of
41 Domestic Tourism in Asia and the Pacific
the following countries: Australia, Bhutan, China, India, Indonesia, Iran, Japan, Korea, Malaysia, Mongolia, New Zealand, Pakistan, Philippines, Sri Lanka, Thailand, and Vietnam.
Figure 0.1 Map of countries studied
Note: Coloured areas indicate countries participated in this study Source: Hyeon Jin Lee
Terms of Reference
The study comprises 4 major components such as an overall country profile, relevant case studies of best practices, domestic tourism and detailed recommendations for the development of domestic tourism.
Overall Country Profile
1. Introduction – Overview of tourism: since domestic tourism cannot be disassociated from tourism in general that includes international visitors, a brief analysis of total arrivals, growth rates and world rank.
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42 Introduction
i. Tourism assets (natural and cultural sites, major events such as festivals) ii. Products (tourist resorts, accommodation, restaurants, health and sanitation, handicrafts) iii. Transport structure and network iv. Budgets (overall and percentage apportioned for DT for product development) v. Marketing – Market segmentation of DT – Marketing and communication with emphasis on IT for DT – Budget for domestic tourism marketing vi. Travel trade structure with number of Tour operators and Travel Agents. 3. Socio-economic data: GDP, growth rates per capita income, unemployment rate 4. Socio-cultural data: i. Demography: total population, growth rates, policies, age/gender structure, urban/rural distribution (regional/provincial analysis for large destinations so as to identify catchment areas of the domestic market) ii. Calendar of national and local holidays, cultural/religious events, festivals
Case Studies: Impact on Social Tourism
1. Crisis shock-absorber 2. Sustainable development/poverty alleviation 3. Capacity building in local communities 4. Income redistribution effect 5. Easing of social tensions through democratization of travel
Domestic Tourism
1. Domestic Tourism Data i. Number of visitors, evolution and trends ii. Economic contribution: tourism consumption and expenditure iii. Seasonality index iv. Employment (total, age, gender) v. Catchment areas (for large destinations in particular) vi. Accommodation – Number of units
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43 Domestic Tourism in Asia and the Pacific
vii. Transport – Mode of travel by domestic tourists (air, rail, road, sea) – Informal sector (private buses, cars) viii. Travel trade catering to DT – Structure and number of Tour Operators and Agents in DT – Policies (special licensing) – Bookings (package, FITs) ix. Restaurants x. Health :hospitals, clinics, medical facilities especially in areas of congestion during cultural/religious events in specific areas xi. Security 2. Domestic tourist i. Age, gender, education ii. Purpose of visit (cultural/religious, leisure, business events, VFR) 3. Domestic tourism products i. Sites, attractions catering especially to domestic visitors. Ratio of international to domestic visitors in other sites frequented by both sectors ii. New products (ecotourism, temple stays, etc) 4. Measurement of Volume and Distribution of Domestic Tourism i. Tourism Satellite Accounts ii. Household surveys iii. Accommodation establishment surveys
Recommendations
1. Further improvements to the existing domestic tourism products to enhance their value to the potential visitors. 2. Policies, strategies, and marketing programmes that the destinations should adopt and implement so as to develop domestic tourism. 3. Policies and strategies to overcome the seasonality and congestion problems in certain destinations within the country. 4. Making demand more solvent through holiday vouchers, preferential rates for transport of seniors, youth and large families. 5. Sustainability guidelines for the development of domestic tourism in the region. 6. Incentives for work force to take domestic holidays of unspent leave. 7. Adapting accommodation to suit local demand especially taking into consideration family composition of domestic tourists and subsidized accommodation for social http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
44 Introduction
11. Streamlining administrative barriers. 12. Rectification of shortcomings in destinations concerning domestic tourism. 13. Involving local communities in domestic tourism. 14. Guidelines for sustainable development of domestic tourism. 15. Improving TSA to get a better picture of domestic tourism.
Salient Characteristics
Tourism Satellite Accounts and Household Surveys
While international tourism has been highlighted due to its capacity of generating foreign exchange as an export earner, that many destinations in their formative years of tourism direly needed, domestic tourism (DT) was neglected both as an area of development as well as a subject of research. Statistics on DT, vital to any economic analysis, were either unavailable or unreliable since there was a lack of strict adherence to the standard measurement systems. International tourism, on the other hand, had the advantage of a system where arrivals and departures were measured at frontier points and expenditure was in foreign currency. This situation changed dramatically with the introduction of Tourism Satellite Accounts (TSA), an initiative of the World Tourism Organization (UNWTO) that has greatly revolutionized accounting procedures, systems and analysis. Many countries, especially the developed nations, adopted TSAs at its inception in the 1990s, whereas it permeated Asia and the Pacific much later with varying degrees of success depending on the strength of the accounting systems of the destinations under review.
The present study of DT across Asia and the Pacific draws heavily on TSAs that are still not completely uniform nor foolproof but nevertheless gives a realistic picture of DT of the countries. The TSAs by themselves are not viable without the supportive data of domestic travellers provided through household surveys conducted by National Tourism Administrations and Organizations (NTAs and NTOs). Surveys have not been implemented in all the countries under review and one of the outcomes of the above study was for requests for assistance in the implementation of household and administrative surveys.
The ToR was formulated to obtain the maximum amount of information on the status of DT in the destinations of which the salient features of the findings are given below.
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UNWTO statistics show that after a drop and a period of stagnation following the world financial crisis of 2009/2010, international tourism increased to 980 million arrivals in 2011
45 Domestic Tourism in Asia and the Pacific
from 939 million in 2010 (UNWTO Barometer). While Europe dominated with 51% of the total, Asia and the Pacific was the second largest region with 22% of the total. The percentage growth in Asia has far surpassed the global average.
Domestic and International Tourism Expenditure
Tourism represents a sizeable portion of the GDP of the countries under review. Apart from the regional variations, national GDP contributions vary between 6 and 10% (in a totally tourism dependent economy like the Maldives it can be as high as 30%). According to UNWTO estimates, tourism directly represents 5% of global GDP. The study has revealed that Domestic tourism contributions, in comparison with International Visitor contributions, are as high as 60% of the total tourism income. Unfortunately, disparities in methodology and accounting systems and calculations make it very difficult to give exact figures that are reliable and comparable from the data provided by the various authors. Suffice to say, the value and contribution of domestic tourism to the various economies studied is much higher than what was known before the studies were commissioned.
It must be remembered that it is the socio-economic impact that is extremely important especially where employment and jobs are concerned. For example, direct and indirect employment generated by tourism in China is 7.7% of the entire workforce, representing 60 million persons, domestic tourism accounting for 40 million of them. In the light of the above findings the weight and value of domestic tourism cannot, therefore, be ignored.
Number of Domestic Tourists
As mentioned earlier the calculation of the number of domestic tourists is dependent on the TSA and the measurement criteria.
From the available and comparable statistics where a semblance of conformity seems to exist in the measurement yardsticks, two countries (Malaysia and Thailand) have a solid TSA conceptual base backed by recent household surveys. In these countries, the ratio of international tourists to domestic visitors seems to align with the average observed by UNWTO in mature destinations – that is, 1:5 (Malaysia: 24.5 million international to 115 million domestic in 2010, and Thailand: 15.9 million international to 68.5 million domestic in 2010). However, Australia and New Zealand, which probably have the most advanced TSAs
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46 Introduction
domestic market will be steady and not suffer the vagaries of the international market. In the case of China the growth in arrivals of international tourists has been increasing rapidly (at a rate far above international and regional levels) and in absolute terms extremely high (55.5 million in 2010). This figure compared to a decade earlier is substantial. Therefore, there is an inverse relationship in the ratios of international to domestic tourists depending on market growth.
Purpose of Visit
The compilation of global statistics given by the various authors show that holidays, leisure and shopping account for 42% of all visitors followed by visiting friends and relatives (VFR) 30%, business and professional 11%, and religious and other at 17%.
Regional and country variations reflect socio-cultural changes. A growing middle-class accounts for the high percentage of domestic leisure tourists, for whom such activities as shopping play an important role. In Korea the leisure component represents 91%, which is probably a reflection of the growing affluent middle class domestic tourists whose aspirations are high. With the growing middle-class in India, the leisure sector is bound to increase in the future. In Malaysia and Philippines VFR contributes more than 50% and religion/other plays an important role in most of the other destinations including India where it accounts for almost 50%.
Figure 0.2 Purpose of visit (% share)
VFR, 30
Business and Holiday/Leisure/Shoppi professional, 11 ng, 42
Religion/Other, 17
Holiday/Leisure/Shopping VFR Business and professional Religion/Other
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As expected, land transport (road and rail) occupy 89% of all forms of transport with air (8%) and water (3%) playing a minor role. Air transport in Australia, due to the vast territory
47 Domestic Tourism in Asia and the Pacific
and higher living standards and income, accounted for 24% in 2011. Within road transport, buses and cars predominate in India and Pakistan. It is most likely that rail transport will increase in the future in China and India, with the advent of fast trains, on condition that prices remain affordable and preferential rates for different sectors of the population are practiced.
Motor vehicles will continue to dominate transport in Asia with the growing middle-class aspiring to car ownership. Once again, India and China are the two destinations where this growth will be at its highest. In Indonesia private ownership of cars and motorcycles (8 million and 61 million units respectively) has given more mobility and further reach for domestic travelers as stated by the author of the study of the destination, and it can be concluded that the same rule will apply to the rest of Asia and the Pacific.
Low cost and budget airlines that have seen a rapid growth in the world are no strangers to Asia, with entrepreneurs making their mark especially in Malaysia and India. However, air transport is still not within the reach of the average domestic traveler in Asia and the Pacific except for a selected elite group. Indonesia and the Philippines, due to their archipelagic nature should see a growth in air traffic for domestic tourism in the future.
Figure 0.3 Mode of transport (% share)
Air
Water
Land
Accommodation
The responses to this important component of the ToR have not been complete or uniform. The contributors have found it difficult to ascertain the exact figures of rooms and beds in http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
48 Introduction
The hotel and hostel sector that accounts for approximately 34% of the total accommodation of domestic tourists falls into two basic categories: those that are registered with NTAs and NTOs and the rest that constitute the informal sector. Results show that two thirds of those using hotels and hostels among domestic tourists belong to the informal sector. This is one other area where statistics are not available or the results not reliable and streamlining through the surveys and the TSA is long overdue.
Figure 0.4 Type of accommodation (% share)
Hotel, 15
Low budget hostel
Other, 12 Friends & relative house/owned dewellings Friends & relative Hotel house/owned dewellings, 54 Other
Low budget hostel, 19
Case Studies
Case studies have been provided either on a thematic, or on a regional basis, each illustrative of specific aspects enumerated in the ToR. Thus we have research on social tourism policies in Korea with a wealth of information on tourism vouchers and coupons, research on Guilin in China examining its market changes in the decade 1998 to 2008, New Zealand’s approach to market segmentation, community based tourism in Thailand, managing ‘Nowruz’ holidays in Iran, to mention a few. The case studies are sometimes incorporated into the main country profiles touching on specific issues such as focus on Puerto Princesa City in the Province of Palawan in the Philippines. The study of Bhutan reveals the lack of a domestic tourism base in the country due to physical constraints and economic disadvantages of the population.
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hardly match with, i.e. the country’s area and population. The area means rich resources, and the population means market.”
This maxim is valid for the whole of Asia and the Pacific as a region when compared to the rest of the world. The tourism contribution to the GDP of the countries provides a combined wealth and assets that will be a motor for growth for the Asia Pacific region as a whole.
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Chapter 1 ______
Australia
1.1 Domestic Tourism in Australia By Australian Government Department of Resources, Energy and Tourism
1.1.1 Introduction
Tourism is important to the Australian economy, contributing AU$ 34.6 billion in Gross Domestic Product (GDP), 2.5% of Australia’s total GDP (2010-2011). Tourism is Australia’s largest services export earner, accounting for AU$ 24 billion in exports in 2010-2011, which equates to around 8% of total exports. The tourism industry employed over 500,000 Australians in 2010-2011 (this is around one in every twenty employed Australians). Continued growth is expected for Australia’s tourism industry, with total inbound economic value from tourism activity forecast to grow by 3.4% each year between 2010 and 2020.
1.1.2 Overview of Domestic Tourism
1) Tourism Administration Structure and Policies
The Australian Government Department of Resources, Energy and Tourism (RET) seeks to maximise tourism’s net economic contribution to the Australian economy. It is the primary source of tourism policy advice to the Australian Government, covering a wide range of areas including bilateral and multilateral tourism relations, visas and passenger processing, transport and security, taxation, labour and skills issues affecting the tourism industry, sustainable tourism, Indigenous tourism development, product quality and tourism industry development.
Tourism Australia is the Australian Government body responsible for international and
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tourism into relevant areas of portfolio responsibility. This includes both international and domestic tourism promotion and tourism industry development.
Tourism Research Australia (part of the Department of RET) manages tourism surveys that cover the inbound, domestic and outbound markets. Key information collected from travellers includes expenditure, places visited, activities, accommodation, transportation and demographics. Tourism Research Australia also develops forecasts of tourism activity on behalf of the Tourism Forecasting Committee (part of Tourism Australia) and models regional expenditure and employment.
Tourism Ministers’ Meetings facilitate consultation and policy coordination among tourism ministers from the Australian Government, each state and territory government and the New Zealand Government. Papua New Guinea and Norfolk Island have observer status. Tourism Ministers’ Meetings operate in conjunction with the Australian Standing Committee on Tourism (ASCOT) whose main objective is to improve cooperation and coordination of government policies and activities as they affect tourism. ASCOT is the forum for senior officials to discuss issues at an operational level. Decisions taken by ASCOT are then recommended to tourism ministers for consideration.
Figure 1.1 Chart of tourism bodies in Australia Minister for Tourism
Tourism Ministers’ Meeting Various tourism industry representative organisations
Australian Standing Committee on Tourism (ASCOT)
State and Territory Tourism Organisations
Australian Government Department of Tourism Australia Resources, Energy and Tourism
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52 Chapter 1 – Australia
to TA. In addition to TA, the Australian Government funds a number of programmes and initiatives within RET. Some examples include: 1. AU$ 6 million over four years from 2010-2011 towards implementing the National Long-Term Tourism Strategy; 2. AU$ 5.5 million over four years to support the implementation and operation of T-QUAL Accreditation; 3. An additional AU$ 4.1 million (over four years) in funding for the China Approved Destination Status (ADS) scheme.
Tourism-related policies and programmes
The following Australian Government policies and programmes are in place to promote continued growth in the Australian tourism sector:
In December 2009, the Australian Government released the National Long-Term Tourism Strategy (the Strategy), developed in conjunction with all state and territory governments and the tourism industry. The Strategy aims to maximise the net economic benefit of tourism activity to the Australian economy through addressing critical supply-side reforms. These reforms include removing regulatory barriers to encourage new investment in tourism infrastructure, addressing labour and skills shortages, improving aviation access and implementing a national tourism research agenda.
In October 2010, TA launched the 2020 Tourism Industry Potential (the Potential) as a rallying call to Australian industry and governments to improve performance and increase returns from the tourism industry. This concise document explains what a successful Australian tourism industry will look like in 2020. By 2020, the Potential is estimated to be between AU$ 115 billion – AU$ 140 billion in overnight expenditure.
Tourism 2020, released in December 2011, represents the next stage of the National Long- Term Tourism Strategy and integrates Tourism Australia's 2020 Tourism Industry Potential into the framework of the National Long-Term Tourism Strategy. Tourism 2020 provides a policy framework to assist tourism businesses grow and remain competitive into the future in a dynamic global environment.
The Australian Government, in consultation with State and Territory Tourism Ministers and tourism industry representatives, has developed Tourism 2020 in response to the escalating challenges and enormous opportunities facing the tourism industry in Australia. In particular, http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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the unprecedented growth opportunities arising from the booming demand and forecast growth from Asia.
In particular, the industry must be ready to service a big new customer base from the growing economies in Asia, particularly from China and India. Tourism Australia, working with State and Territory Tourism Organizations (STOs), will lead coordinated and targeted campaigns to create business from these growing markets. Australian, State and Territory Government agencies will work with tourism businesses to build capability to service the needs of a growing number of visitors to our country.
Tourism 2020 will provide the tourism industry with tools and capabilities to achieve the 2020 Tourism Industry Potential including: increasing overnight visitor spend; growing the available labour force; increasing accommodation and airline capacity, and improving product quality and industry productivity. This will be achieved through accessing and deepening market penetration, providing new tools to business, reducing compliance costs, and taking more flexible approaches to labour supply - all of which should boost productivity.
Tourism Quality: In 2010, the Australian Government announced AU$ 40 million over four years, from 1 July 2011, in new funding for TQUAL Grants. In line with the National Long-Term Tourism Strategy, TQUAL Grants focuses on supply side projects.
Two types of funding are available under this programme: 1. Strategic Tourism Investment Grants: of up to AU$ 1 million (plus GST) for a small number of larger scale projects to support Indigenous tourism, economic development and tourism employment; and 2. Tourism Quality Projects: of up to AU$ 100,000 (plus GST) for smaller scale projects to support collaborative community tourism industry development.
Under the first round of the programme, the Minister for Tourism, Martin Ferguson announced AU$ 8.5 million in funding for 117 successful applicants. Another Tourism Quality Projects round was announced in March 2012.
2) Socio-economic Data
Australia’s economy is open and innovative, with a commitment from the Australian Government to maintain the strong economic growth that has taken place since the early http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
2 http://www.dfat.gov.au/aib/overview.html
54 Chapter 1 – Australia
Table 1.1 Recent economic indicators3 2006 2007 2008 2009 2010a 2011b GDP (US$ billion) 785.8 954.5 1,060.7 987.1 1,238.0 1,507.4 (current prices) GDP per capita (US$) 37,644.0 44,891.0 48,813.0 44,602.0 55,150.0 66,984.0 Real GDP growth 2.5 4.7 2.4 1.5 2.5 1.8 (% change yoy) Current account -41,503.0 -59,214.0 -47,442.0 -42,031.0 -33,027.0 -32,801.0 balance (US$ million) Current account -5.3 -6.2 -4.5 -4.3 -2.7 -2.2 balance (% GDP) Inflation 3.3 3.0 3.7 2.1 2.7 3.5 (% change yoy) a) All recent data subject to revision. b) IMF forecast.
The seasonally adjusted Australian unemployment rate decreased 0.1 % points to 5.1% in January 20124. Further information can be found at: www.abs.gov.au
3) Socio-cultural Data
The preliminary estimated resident population (ERP) of Australia at 31 March 2011 was 22,546,300 persons. This was an increase of 312,400 persons since 31 March 2010. The increase for the year ended 31 March 2011 was the lowest recorded since the year ended 30 June 2006 (303,100 persons).
Australia's population grew by 1.4% during the year ended 31 March 2011. The growth rate has been declining since the peak of 2.2% for the year ended 31 December 2008 and was the lowest growth rate since the year ended 30 September 20055.
Age and gender structure6
Australia's population, like that of most developed countries, is ageing as a result of sustained low fertility and increasing life expectancy. This is resulting in proportionally fewer children (under 15 years of age) in the population. The median age (the age at which half the population is older and half is younger) of the Australian population has increased by 4.8 years over the last two decades, from 32.1 years at 30 June 1990 to 36.9 years at 30 June
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2010. Between 30 June 2009 and 2010 the median age remained relatively steady at 36.8 years. Over the next several decades, population ageing is projected to have significant implications for Australia, including for health, labour force participation, housing and demand for skilled labour.
The age with the largest number of people in Australia at 30 June 2010 was 25 years with 340,000 people. The number of children aged 0-14 years in the population increased by 44,600 in the 12 months to 30 June 2010. The number of children aged 0-4 years increased by 38,500, 5-9 increased by 7,800 and 10-14 decreased by 1,700. The number of people aged 15-64 years (working age population) increased by 1.6% (or 237,700 persons) in the year ended 30 June 2010. During the 20 years between 30 June 1990 and 30 June 2010, the proportion of population aged 15-64 years increased from 66.9% to 67.6%.
In the 12 months to 30 June 2010, the number of people aged 65 years and over in Australia increased by 94,800 people, representing a 3.3% increase. The proportion of the population aged 65 years and over increased from 11.1% to 13.5% between 30 June 1990 and 30 June 2010. In the 12 months to 30 June 2010, the number of people aged 85 years and over increased by 23,100 people (6.1%) to reach 398,200. Over the past two decades, the number of elderly people increased by 170.6%, compared with a total population growth of 30.9% over the same period. Increased life expectancy for both males and females has contributed to this rise.
At 30 June 2010, the gender ratio of the total population for Australia was 99.2 males per 100 females. At age 0, the sex ratio for Australia in 2010 was 105.3 males per 100 females. This excess of males in the earlier years contrasts with the opposite situation in the older years and for the total population which can be attributed to female longevity.
Urban and rural distribution7
At June 2010, just under one-third (32.4%) of Australia's population resided in New South Wales, down slightly from 33.1% in 2005. The Northern Territory and Australian Capital Territory contained the smallest proportions of Australia's population (1.0% and 1.6% respectively) of all states and territories, as they did five years prior
At June 2010, just over one-fifth (20.5%) of Australia's population resided within Sydney Statistical Division (SD), down slightly from 20.8% in 2005. Melbourne SD had the largest growth of any capital city SD in the five years to June 2010, gaining 396,400 people. Darwin http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
7 Australian Bureau of Statistics, Population by Age and Sex, Regions of Australia, 2010 (cat. no. 3235.0)
56 Chapter 1 – Australia
At June 2010, 14.30 million people (64.0% of the population) resided in capital city SDs and 8.03 million (36.0%) resided in the remainder of Australia. There were more females (7.21 million) than males (7.09 million) living in capital cities, while more males (4.03 million) than females (4.00 million) resided in the remainder of the country.
National and local holidays and events
Australia has a number of public holidays, largely based around Christmas celebrations and events of national or local significance. Australia’s national holidays are: – 1 January (New Year’s Day) – 26 January (Australia Day) – Good Friday – Easter Monday – 25 April (Anzac Day) – Queen’s birthday holiday (June in all States and Territories except Western Australia (WA), October in WA) – 25 December (Christmas Day) – 26 December (Boxing Day)
Where these days fall on a weekend (Saturday or Sunday) the holiday may be substituted for another day – usually the first business day thereafter.
With the exception of National Public Holidays, Australian States and Territories individually declare all other public holidays that apply to the given State or Territory. These days commonly mark significant local sporting events, for example Melbourne Cup, agricultural show days, the founding of a city or state or community days.
Australian schools operate on a four term per year basis with school holidays of two weeks each between terms and six weeks between the end of term four and the beginning of the following year. State and territory school holidays differ by one or two weeks to distribute the spread of holidaymakers to some degree. Term holidays are commonly in April (often incorporating Easter holidays), June/July and September/October, with summer holidays extending from around mid December to the end of January.
Public, private and not for profit organizations host a wide variety of events and festivals around Australia. Among these are major sporting events, music, culture and arts festivals, food and wine festivals and special interest events. Significant spectator sports include http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Table 1.2 Major events in Australia January Summernats car festival Canberra Australia Day celebrations Nationally Australian Open tennis tournament Melbourne Tour Down Under (cycling) Adelaide Sydney Festival Sydney Chinese New Year Various locations February Gay and Lesbian Mardi Gras Sydney National Multicultural Festival Canberra Adelaide Fringe Festival Adelaide March Australian Grand Prix Melbourne Melbourne Fashion Week Melbourne Canberra Balloon Fiesta Canberra WOMADelaide (world music) Adelaide April Melbourne International Comedy Festival Melbourne National Folk Festival Canberra Anzac Day ceremonies Nationally Tasting Australia (food and wine festival) Adelaide and surrounds Targa Tasmania (rally driving) Tasmania May Australian Fashion Week Sydney July Camel Cup Alice Springs, Northern Territory August City to Surf marathon Sydney Henley on Todd Regatta Alice Springs, Northern Territory September Floriade (flower festival) Canberra October Melbourne International Arts Festival Melbourne Bathurst 1000 (motor racing) Bathurst, New South Wales November Melbourne’s Spring Racing Carnival (horse racing) Melbourne Remembrance Day ceremonies Nationally December Christmas celebrations (including community carols) Various locations Sydney to Hobart Yacht Race East coast of Australia New Year’s Fireworks Various locations, particularly Sydney http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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4) Domestic Tourism Data
Table 1.3 Key statistics of domestic tourism Domestic tourism Units 2009 2010 2011
Volume1 1. Total number of domestic visitors (× 1000) 210,470 218,690 222,671 2. Overnights (× 1000) 66,077 67,402 69,648 3. Same day visitors (× 1000) 144,393 151,288 153,023 4. Visiting regions The most visited regions by Name Melbourne Melbourne Melbourne non-resident visitors (3 regions) Sydney Sydney Sydney Brisbane Brisbane Brisbane The most visited regions by Name Sydney Sydney Sydney resident visitors (3 regions) Mid North Brisbane Brisbane Coast Mid North Mid North Brisbane Coast Coast Accommodation2 Hotels with 15 or more rooms (× 1000) 859 857 843* Guest houses with 15 or more rooms (× 1000) 2477 2450 2423* Serviced apartments with 15 or more (× 1000) 974 972 965* rooms Hotels, motels and serviced apartments (× 1000) 4310 4279 4231* with 15 or more rooms Occupancy2 Hotels with 15 or more rooms % 70.1 71.8 71.6 Guest houses with 15 or more rooms % 57.6 59.2 59.9 Serviced apartments with 15 or more % 67.5 68.9 69.7 rooms Hotels, motels and serviced apartments % 64.7 66.3 66.8 with 15 or more rooms Mode of Transport1 1. Total (× 1000) 210,470 218,690 226,196 2. Air (× 1000) 15,481 16,302 16,491 3. Water (× 1000) 142,889 149,218 154,233 4. Land (× 1000) 56,557 57,313 59,480 Railway (× 1000) 137,997 144,020 148,447 Road (× 1000) 48,446 48,937 51,357 Others (× 1000) 280 428 349 5. Other transport (× 1000) 144,830 151,743 157,023 Expenditure3 Total** AU$ million 91,543 93,199 95,653 Total tourism expenditure over GDP*** % 2.6 2.6 2.5 Domestic tourism expenditure over GDP*** % 1.9 1.9 1.8 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Purpose1 Total (× 1000) 210,470 218,690 226,196 Personal (× 1000) 166,685 169,636 171,991 Holidays, leisure and recreation (× 1000) 103,429 103,725 102,325 Other personal purpose (× 1000) 63,256 65,911 69,666 Business and Professional (× 1000) 26,531 28,402 31,006 Other purpose (× 1000) 18,740 22,088 24,665 Note: *) Based on year ending September 2011. **) Estimates are in Australian dollars and refer to the financial years 2008-2009, 2009-2010, 2010-2011. ***) Direct tourism GDP. Sources: 1) Tourism Research Australia National Visitor Survey. 2) Australian Bureau of Statistics Tourist Accommodation (8635.0). 3) Australian Bureau of Statistics’ Tourism Satellite Account (5249.0).
1.1.3 Case Study: Impact on Social Tourism
1) Crisis Shock-absorber – Queensland tourism industry support package
Following natural disasters in Queensland in late December and early January 2010-2011 (flooding and Cyclone Yasi), the Australian Government, in partnership with the Queensland Government, delivered a AU$ 12 million Tourism Industry Support Package. The package provided assistance to Queensland tourism operators to address holiday cancellations and a decrease in bookings. The majority of the funding (AU$ 10 million) was allocated for marketing. The package also comprised various industry development projects, including a series of workshops for operators to ensure they are prepared for and attractive to the China market. A number of ‘Recovery Forums’ were also held, providing information on assistance available to operators.
The Support Package reflects the importance of tourism activity to the Queensland economy, contributing AU$ 9.2 billion per annum to that state’s economy and employing more than 120,000 people. The regions of Queensland affected by flooding in early 2011 accounted for around 56% of Queensland’s tourism gross state product and 53% of Queensland’s tourism employment.
Previously, following bushfires in Victoria in 2009, the Australian and Victorian Governments worked together on a recovery package for the affected region. The Governments provided support to regional tourism operators who were affected economically by the bushfires through an AU$ 10 million Tourism Industry Support Package. The Package was delivered between March 2009 and June 2011 and provided: http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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3. AU$ 3 million to assist with the enhancement and redevelopment of tourism and visitor facility infrastructure in national, state and regional parks adjoining bushfire- affected areas.
These measures are designed to help tourism operators recover from external shocks and ensure any negative impact is not prolonged.
2) Sustainable Development and Poverty Alleviation – Australia’s National Landscapes Programme
Australia recognises the need to pursue green innovation in tourism and has a number of policies and programmes in place to support these at all levels of government and through industry. Australia’s National Landscapes Programme is an innovative and unique partnership between Parks Australia and Tourism Australia, inspired by the need to make Australia’s wealth of over 9,000 national parks, protected areas and reserves more attractive for domestic and international visitors. This national strategic approach to nature-based tourism seeks to differentiate Australia’s iconic natural and cultural destinations and improve the delivery of quality visitor experiences throughout protected areas and surrounding regions. By highlighting Australia’s natural tourism assets, the programme aims to promote and support the conservation of some of the world’s most distinct and rich environments. Given the locations of these iconic landscapes, the programme also provides economic stimulus to regional areas of Australia.
Current sites in the National Landscapes Programme are: – Australian Alps – Australia’s Coastal Wilderness – Australia’s Green Cauldron – Australia’s Red Centre – Australia's Timeless North – Flinders Ranges – Great Barrier Reef – Greater Blue Mountains – Great Ocean Road – Great South West Edge – Kangaroo Island – The Kimberley – Ningaloo – Shark Bay http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
It is expected that more sites will be announced shortly. For more information, please see: http://www.tourism.australia.com/en-au/marketing/5651_5544.aspx
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1.1.4 Conclusion and Recommendation
The Australian Government recognises the importance of tourism to the Australian economy and has a number of policies in place to encourage tourism to thrive. While we cannot make specific recommendations on how other countries could bolster their domestic tourism industries, below is a summary of measures underway which are helping the Australian tourism industry address supply side challenges, thus making the tourism industry stronger and more able to capitalise on domestic visitation.
1) Supply Side Measures
Tourism 2020 was launched on 6 December 2011 as an update to the National Long-Term Tourism Strategy, building on the previous framework for strengthening the supply side of the tourism industry. Tourism 2020 provides the industry with the tools it needs to remain competitive in an ever-changing global economy and take advantage of the opportunities that Asia presents, with the aim of doubling overnight expenditure to AU$ 140 billion by 2020. Under Tourism 2020, the Commonwealth and State and Territory Governments are working with industry to focus on six strategic priorities, as below: 1. Growing demand from Asia; 2. building competitive digital capability; 3. encouraging investment and implementing the regulatory reform agenda; 4. ensuring tourism transport environment supports growth; 5. increasing supply of labour, skills and Indigenous participation; and 6. building industry resilience, productivity and quality.
While Tourism 2020 lists ‘growing demand from Asia” as a key objective, many of its initiatives directly support an increase in domestic tourism activity in Australia, as below:
Build competitive digital capability Tourism 2020 encourages tourism operators to take full advantage of information and communication technology to attract visitors and enable online transactions. Currently, only one third of Australia’s tourism operators have online booking and payment facilities, limiting their ability to service customers both domestically and overseas. Tourism 2020 addresses this by developing and implementing the National Online Strategy for Tourism and encouraging uptake of the Tourism E-Kit. Further information is available at: – http://www.atdw.com.au/tourism_e_kit.asp
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Encourage investment and implement the regulatory reform agenda Investment is essential to ensuring Australia’s tourism product and infrastructure is attractive to and ready for international and domestic tourists. Tourism 2020 aims to remove red tape barriers and facilitate major new projects through working across government to identify and promote tourism investment opportunities. Monitoring tourism investment also helps identify gaps and opportunities, and this is being carried out by Tourism Research Australia. Further information is available at: http://www.ret.gov.au/tourism/policies/nltts/workinggrps/invest/Pages/default.aspx
Ensure tourism transport environment supports growth Being a vast continent, Australia relies heavily on [a comprehensive aviation network and] efficient transportation modes to facilitate domestic tourism. Tourism 2020’s Tourism Access Working Group concentrates on identifying and addressing transport access and infrastructure impediments to facilitate tourist dispersal around Australia. Further information is available at: http://www.ret.gov.au/tourism/policies/nltts/workinggrps/access/Pages/default.aspx
Increase supply of labour, skills and Indigenous participation Tourism 2020 aims to ensure tourism operators can meet their labour and skills needs in order to deliver high quality customer service to all visitors. Measures include simplifying visa processes to allow for increased international labour supply and the delivery of Labour and Skills Connect an online solution for education, training, recruitment and retention for the tourism and hospitality industry. Further information is available at: http://www.ret.gov.au/tourism/policies/nltts/workinggrps/labour/Pages/default.aspx
Build industry resilience, productivity and quality Tourism 2020 encourages tourism operators to grow their profitability and marketability by delivering higher quality products and services using improved business planning, systems and standards. Included among these initiatives are the TQUAL Grants programme and the development of an Industry Resilience Toolkit.
2) Demand Side Measures
Incentives for the workforce to take domestic holidays of unspent leave.
No Leave No Life
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63 Domestic Tourism in Asia and the Pacific
experiences) saw an opportunity to explore opportunities to encourage annual leave taking and convert this into Australian holidays.
Annual leave stockpiling is a critical issue for individuals, businesses and the economy. Research reveals that the financial liability for businesses is growing, employees’ health and stress levels are increasing and broader industries, such as domestic tourism are suffering, as Australians choose to stay at work rather than take a well-earned break.
It is in this context that Tourism Australia launched No Leave, No Life on 30 March 2009. The programme is designed to equip employees and employers with tools to tackle annual leave stockpiling with flow-through benefits to the domestic tourism industry.
The programme is available to all organizations including both private and public sectors. It aims to work with multiple industry partners advocating leave taking rather than using one specific travel partner to advertise discreet holiday packages. As this is a cultural change initiative, the intention is for No Leave, No Life to be a long-term domestic marketing programme.
Market research (Roy Morgan) shows that leave liability in the Australian economy is much higher than that accounted for in the 2005 study, with an estimated 121 million days of leave accrued by Australian full time employees as at June 20088. Annual stockpiled leave has fluctuated over time. Stockpiled leave reduced after the introduction of the No Leave, No Life campaign, and was lowest in June 2010 with 116 million days. But the latest figures show stockpiled leave to be sitting at 129.6 million days to the year ending September 2011.
Tourism Australia’s objective is to convert some of Australia’s stockpiled annual leave into Australian holidays, ultimately benefiting individuals, businesses and the domestic tourism industry.
No Leave No Life does this by: 1. Raising awareness amongst employers of the issue and the programme; 2. recruiting employers to support the programme and roll out within their organizations; 3. changing the negative attitudes around taking leave and create a positive leave culture; 4. making leave stockpilers recognise the benefits of taking leave; and 5. encouraging them to book an Australian holiday. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
8 Full time, 14+nationally, Sourced from Roy Morgan Holiday Tracking Survey to June 2008.
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There’s Nothing Like Australia
Tourism Australia’s There’s Nothing Like Australia campaign has been built with longevity and flexibility in mind. The first phase of the campaign launched in May 2010 alongside the There’s Nothing Like Australia print and digital advertising, plus a video piece, suitable for broadcast in cinemas, television and online. This was designed to involve Australians by sharing their favourite Australian place or experience with the world.
The idea at the core of phase one of the campaign was backed by research that showed Australians are eager to promote their country. Approximately eight in 10 Australians said they know what makes their country unlike any other, and eight in 10 also said they think that every Australian, in some way, can help promote tourism.
In 2010, Australians proved their enthusiasm for promoting their country by uploading nearly 30,000 stories and images to www.nothinglikeaustralia.com – making it one of Australia’s most successful consumer-generated promotions ever.
Tourism Australia launched the second phase of the There’s Nothing Like Australia domestic marketing campaign – the Dream Team promotion - on 16 September 2011. This phase invited Australians to share their favourite Australian experience with their fellow Aussies at www.nothinglikeaustralia.com and to nominate their holiday Dream Team of up to five people they’d most like to share their dream holiday.
In 2011, Australians again proved their enthusiasm by uploading over 41,000 images to www.nothinglikeaustralia.com The support shown by Australians for the promotion has exceeded expectations. As well as the thousands of entries, there were more than 310,000 unique visitors to the campaign website, with each spending an average of around seven and a half minutes on the site looking at the words and images of the participants.
Tourism Australia used all the entries to create an interactive digital map of Australia, made up of all the photos Australians entered into the competition. It is searchable by experience type, location, and by 1,000 keywords. This campaign appeals to both domestic and international tourists. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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66 Chapter 2 – Bhutan
Chapter 2 ______
Bhutan
Constraints to the Development of Domestic Tourism in Bhutan Editor’s Note
Bhutan’s situation is dissimilar to the other Asian destinations in that domestic tourism as a contributory economic sector is practically non-existent and some parallels in this respect can be drawn from island communities of the Pacific where international tourism is the dominant force with little or no DT activities. Sandwiched between two of most populous countries in the world, China and India, the giant neighbours may probably be Bhutan’s saviours in international tourism in the future. Hopefully this will pave the way for the development of domestic tourism as a spill over. It must be noted that both China and India shelter migrant Bhutanese ethnic groups who could provide the resources for future DT.
The two biggest constraints for the development of tourism in general and domestic tourism in particular stems from the geography of Bhutan viz. topography and climate. The country is mountainous with high craggy peaks and deep ravines that make transport a real hazard. Bhutan therefore does not have a railway service and the only major thoroughfare is an East to West road that is subject to the extreme weather conditions particularly in winter. Avalanches and mudslides make road transport a challenge and four wheel drive vehicles are a must in these conditions. While these vehicles are at the disposal of international tourists who do mountaineering and trekking expeditions it is obvious that domestic tourists cannot afford this luxury. Another major social factor related to transport is the increasing demand for pack animals for the expeditions that deprive the local population of their services in their daily livelihood chores. There is only one major international airport while moves to construct domestic airports and helipads are under review. Where the climate is concerned it is harsh with spring and autumn the main seasons for travel. This also explains the sedentary nature of life where travel for the populace does not involve moving to long distances. The close-knit family units provide some form of VFR but this cannot be converted into figures nor does it compose an element of DT of any economic significance. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Cultural tourism is the second serious attraction of Bhutan. The population is essentially Buddhist (75%) belonging to the Mahayana school while the rest practice Hinduism. The
67 Domestic Tourism in Asia and the Pacific
close association of the two philosophies has given rise to a number of temples which in turn occupy strategic points and have a double function as fortresses commonly called Dzongs that dot the landscape. The temples are associated with numerous festivals (Tshechus) that are popular locally and now have an appeal to the outside world. The only domestic tourism, if this is apt, is that associated with the religious practices where the local population participates in numbers. The arts and crafts, dance and music form an intrinsic part of the cultural activities of the Bhutanese. The common slogan of Bhutan adopted in 1979 by the monarchy is ‘Land of Happiness’ that has had an international echo, attracting many celebrities to this mountainous state that boasts of a pristine natural beauty where nature and culture are in harmony.
The biggest constraint to the development of DT is the economic situation where people do not possess the disposable income to travel. 23% of the population live below the poverty line and 70% of the people are engaged in subsistence farming to eke out a living. In these conditions, except for a very selected few who are concentrated in the cities, especially in Thimphu, the Capital, DT is a luxury that is not within their reach.
However, the country has made a concerted effort to develop international tourism as it possesses the twin attributes of nature and culture. There was a mere handful (300 to be exact) of visitors in 1974 that rose to 5,599 in 2002 and reached 37,000 in 2010 (UNWTO barometer). Under the expert guidance of the Tourism Council of Bhutan the destination has managed to develop tourism in a sustainable manner while at the same time filling the stat coffer. All visitors have to pay a levy of US$ 200 on arrival that accrues to the government as revenue. Tourism today constitutes 10% of the GDP of the country and ambitious plans have been made to increase the contribution in the future. Drukair the national airline is to expand its international services while other domestic airlines (Tashi Air) are due to commence operations. A major road from Guwahali to India is in the pipe line. The accommodation sector has also received a boost and is likely to keep pace with the increasing demand. Bhutan has not got any major resources (except for energy in the form of hydro-electricity, exported to India) and tourism is a major asset for future development. This, however, requires investment which seems to be arriving from different sources since the returns are guaranteed.
There are inherent problems especially of human resources required for tourism development and the distribution of income to the population without which DT is a dead letter. Bhutan may be able to profit from its very large expatriate and migrant population in the future both as a source of visitors as well as a reserve for the service sector that requires trained personnel. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
There are no statistics on domestic tourism in Bhutan at present. This may be due to the limited market but on the other hand researchers could take an interest in a field that is definitely going to grow in the future when the benefits of international tourism continue to
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filter into the local population. Education and community development are vital for DT to succeed and this should be the next step in Bhutan’s quest to place itself on the world tourism map. The country has one major asset that many others may envy: energy and electricity that is tapped without polluting the landscape! The physical constraints of transport would no doubt be eased with more investment in roads and air transport services that include helicopter services. The policy of ‘high-end, low-volume’ tourism that the Bhutanese government has been promoting will no doubt pay dividends that eventually will help the DT sector. Tourism has also promoted Bhutanese culture by creating employment not only directly but also to the traditional sectors engaged in cultural activities (dancers, musicians) all of which interplay with DT. The future Tourism Master Plan will do well to give some consideration to domestic tourism in the same light as ecotourism and sustainability that are guiding forces of tourism development. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Chapter 3 ______
China
3.1 Domestic Tourism in China: Policy, Practice and Prospect By Professor Guangrui Zhang
China in Brief
Official name: The People’s Republic of China Location: in East Asia and on the West bank of the Pacific Ocean, bordering 14 countries on land, and 8 countries on sea Land area: 9.6 million km2 Population: 1,339,724,852 (2010) Capital: Beijing Administrative districts: 4 municipalities under the central administration, 23 provinces, 5 autonomous regions, 2 Special Administration Regions (Hong Kong and Macau)
GDP: US$ 5,878.3 billion (World Rank: 2) GDP as a share of world GDP: 13.61% (World Rank: 2) GDP per capita: US$ 4,382 (World Rank: 83) Global Competitiveness Index 2011-2012: 26 Source: WEF, The Global Competitiveness Report 2011-2012
Travel and Tourism Competitiveness Index 2011: 39 T&T industry, 2010 estimates: GDP (US$): 113,400 millionPercent of total: 2.1 Employment: 17,123,000Percent of total: 2.2 T&T economy, 2010 estimate: GDP (US$): 499,941 millionPercent of total: 9.2 Employment: 60,102,000Percent of total: 7.7 Source: WEF, Travel and Tourism Competitiveness Report 2011
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Figure 3.1 Map of China
Source: The Central People's Government of the People’s Republic of China at www.GOV.cn
3.1.1 Introduction: China’s Tourism in the past Six Decades
Compared with most developed countries, China has followed a unique road for tourism development in line with its specific political and economic features. As a human activity, travel and tourism started from ancient times, a phenomenon observable in the other civilized societies the world over. However, travel and tourism as a business or industry was introduced to China recently and she is a later comer in the world, far later than many developed or even developing countries.
In the past 6 decades since the birth of the People’s Republic of China in 1949, China’s tourism development can be roughly divided into two stages: during the first 30 years from 1949 to 1978, the tourism sector paid emphasis to was inbound tourism, being regarded as a kind of people-to-people diplomatic activity; and during the second 30 years from 1979 to 2009, tourism, consisting of all inbound, outbound and domestic components, was identified as an important industry of the national economy and domestic tourism has been the backbone of the entire tourism sector.
Up to now, China’s tourism at large has embarked on the normal track of development, that is, domestic tourism being the mainstay, and inbound and outbound tourism growing in line http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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According to the statistics released by China National Tourism Administration, in the year of 2010 the number of domestic trips reached over 2.1 billion, generating CNY 1,260 billion as revenue. The number of overnight-stayed international arrivals was 55.66 million in total, generating over US$ 45.8 billion as foreign exchange earnings from tourism. Therefore, the grand tourism revenue for the year was over CNY 1,570 billion, accounting about 4% of the country’s GDP. Details can be found in the following tables 3.1 and 3.2.
Table 3.1 China’s inbound tourism, 1978-2010 Year Tourist arrivals Tourist revenue World rank Total Overnight-stay arrivals Revenue Annual by arrivals (× 1000) Annual growth (US$ million) growth (%) over-night (× 1000)* (%) stayers 1978 1,809 716 - 263 - - 1979 4,204 1,529 113.5 449 70.9 - 1980 5,703 3,500 128.9 617 37.3 18 1981 7,767 3,767 7.6 785 27.3 17 1982 7,924 3,924 4.2 843 7.4 16 1983 9,477 3,791 -3.4 941 11.6 16 1984 12,852 5,141 35.6 1,131 20.2 14 1985 17,833 7,133 38.7 1,250 10.5 13 1986 22,819 9,001 26.2 1,531 22.5 12 1987 26,902 10,760 19.5 1,862 21.6 12 1988 31,695 12,361 14.9 2,247 20.7 10 1989 24,501 9,361 -24.3 1,860 -17.2 12 1990 27,462 10,484 12.0 2,218 19.2 11 1991 33,350 12,464 18.9 2,845 28.3 12 1992 38,115 16,512 32.5 3,947 38.7 9 1993 41,527 18,982 15.0 4,683 18.7 7 1994 43,684 21,070 11.0 7,323 ** 6 1995 46,387 20,034 -4.9 8,733 19.3 8 1996 51,127 22,765 13.6 10,200 16.8 6 1997 57,588 23,770 4.4 12,074 18.4 6 1998 63,478 25,073 10.5 12,602 4.4 6 1999 72,796 27,047 7.9 14,099 11.9 5 2000 83,444 31,229 15.5 16,224 15.1 5 2001 89,013 33,167 6.2 17,792 9.7 5 2002 97,908 36,803 11.0 20,385 14.6 5 2003 91,662 32,971 -10.4 17,406 -14.6 5 2004 109,038 41,761 26.7 25,739 47.9 4 2005 120,292 46,809 12.1 29,296 13.8 4 2006 129,492 49,913 6.6 33,949 15.9 4 2007 131,873 54,720 9.6 41,919 23.5 4 2008 130,027 53,049 -3.1 40,843 2.6 4 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Table 3.2 Chinese outbound tourism, 1992-2010 Year Ooutbound departures Remarks Overnight departures (× 1000) Annual growth (%) 1983 The year to start outbound travels to Hong Kong and Macau
1992 2,928.7 1993 3,740.0 27.7 1994 3,733.6 -0.20 1995 4,520.5 21.1 5-day week started 1996 5,060.7 12.0 1997 5,323.9 5.2 1998 8,425.6 * 1999 9,232.4 9.6 “Gold Week” started 2000 10,472.6 13.4 2001 12,133.1 15.9 2002 16,602.3 36.8 2003 20,221.9 21.8 SARS 2004 28,850.0 42.7 2005 31,026.3 7.5 2006 34,523.6 11.3 2007 40,954.0 18.6 2008 45,844.4 11.9 2009 47,656.3 4.0 2010 57,386.5 20.4 *) The data collection method changed, and the data is not comparable with previous ones. Source: CNTA
3.1.2 Domestic Tourism Profile
1) Facts and Figures
Generally speaking, domestic tourism refers to travel and tourism for leisure by the Chinese residents within China’s mainland. That is to say, unless otherwise specified, the information of domestic tourism does not include business travels, nor travel and tourism between the mainland and Hong Kong, Macau and Taiwan.
Domestic tourism statistics in a real sense did not exist until mid-1980 in China owing to many reasons. The initial data on domestic tourism was released officially in 1985. Since then domestic tourism has increased tenfold in terms of trips, and hundredfold in terms of spending9. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
9 This is not really accurate, just a rough idea, since the statistic figures are well defined and consistent.
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Table 3.3 China’s domestic tourism, 1984-2010 Year Domestic trips Domestic revenue Remarks Trips Revenue Rate (%) Rate (%) (billion) (CNY billion) 1984 0.20 - - - Start to collect data 1985 0.24 20.0 8.0 - 1986 0.27 12.5 10.6 32.5 1987 0.29 7.4 14.0 32.1 1988 0.30 3.4 18.7 33.5 1989 0.24 -20.0 15.0 -19.7 Political disorder 1990 0.28 16.7 17.0 13.3 1991 0.30 7.1 20.0 17.6 1992 0.33 10.0 25.0 25.0 1993 0.41 24.2 86.4 * Survey changed 1994 0.524 27.8 102.35 18.5 1995 0.629 20.0 137.57 34.4 5-day week started 1996 0.639 1.6 163.84 19.1 1997 0.644 0.8 211.12 29.0 1998 0.694 7.8 239.12 13.2 1999 0.719 3.5 283.19 18.4 Long-holiday started 2000 0.744 3.5 317.6 12.1 2001 0.784 5.4 352.2 10.9 2002 0.878 12.0 387.8 10.1 2003 0.870 -0.9 344.2 -11.2 SARS 2004 1.102 26.7 471.1 36.8 2005 1.212 10.0 528.6 12.2 2006 1.394 15.0 623.0 17.9 2007 1.610 15.5 777.1 24.7 2008 1.712 6.3 874.9 12.6 Beijing Olympics 2009 1.902 11.1 1,018.4 16.4 2010 2.103 10.6 1,258.0 23.5 Shanghai Expo *) The data collecting method changed, and the data not comparable with previous ones. Source: CNTA Yearbook of tourism statistics
The general picture of China’s domestic tourism at present can be summarized as follows:
Rapid growth In the past decade from 2001 to 2010, domestic trips increased from 784 million to 2,103 million with an annual growth of 10.4%, and domestic spending during the same time increased from CNY 352.2 billion to CNY 1,258 billion with an annual growth of 13.6%.
Low level
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lower than the inflation rate during the same time. Based on the large population, the trip/person rate is still very low, with only around 1.5 up to 2010.
Table 3.4 Chinese domestic trips and spending Trips Rate of tourism Total spending Spending per trip Year (billion) (%) (CNY billion) (CNY) 2001 0.784 62.2 352.23 449.5 2002 0.878 69.2 387.84 441.8 2003 0.870 67.9 344.22 395.7 2004 1.102 84.8 471.07 427.5 2005 1.212 92.7 528.60 436.1 2006 1.394 106.1 622.97 446.9 2007 1.610 122.5 777.06 482.6 2008 1.712 129.5 874.90 511.0 2009 1.902 143.2 1,018.37 535.4 2010 2.103 157.4 1,257.98 598.2 Note: Rate of tourism = total trips/total population Source: CNTA
Imbalanced development
Economic imbalance in different regions leads to imbalanced development of domestic tourism. In general, city dwellers make more trips than rural residents, people in the eastern developed regions than those in the western under-developed regions. Survey shows that the average trip/person rate between the city dwellers and rural population in 2010 was 2.16:1 (trips 2.46:1.15), and the rate of average spending per person was 2.89:1 (CNY 883:306) at the same time.10
Changing travel patterns
Owing to the holiday arrangement by the government, a majority of the people like to make their long-distance domestic travels during the long-holidays and short distance travels during the short breaks and weekends. For the long-distance trips, people like to take the package tours, while the weekend trips are often made by themselves. A new fashion of domestic tourism has emerged in that family or a group of friends plan their own self-drive trips based on the on-line information doing their own hotel bookings. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
10 CNTA: Yearbook of Tourism Statistics 2010.
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prolonged economic reform and the major driving factors to domestic tourism growth include government policy, economic growth and conceptual changes. During the past two decades or so, government authorities at various levels have formulated a series of incentive policies for promoting domestic tourism. The continuous rapid economic growth has led to the large improvement of infrastructure and necessary public facilities for travel and tourism and to increase of income of the people. Last but not least is that people’s conception has changed gradually regarding travel and tourism as a kind of normal and necessary consumption once one has enough food and clothing.
2) Policy Evolution
China’s domestic tourism development can be roughly divided into four periods: control, “let go”, equal importance, and priority.
The period of control
Leisure travel long existed in Chinese history as a human activity, but it was never considered as a business until the mid-1980s. Tourism as an economic activity encouraged by the government in the late 1970s due to the economic reform and open policy, it meant only inbound travels by foreigners or overseas Chinese, in order to earn foreign currency badly needed for modernization and also to win the understanding of outside world. In line with the shortage of infrastructure and service facilities, the government policy towards domestic tourism in the early 1980s was “not to promote” 11 . However, realizing the significance of domestic tourism as an issue relating to the relationship between the government and the masses, the government asked to prepare conditions actively to meet the needs of the people.
The period of “let go”
The impact of inbound tourism boom triggered tourism demand of the Chinese people with the economic reform and open policy implementation in early 1980s. To meet the increasing demand of the masses, the central government readjusted the tourism policy in 1985. In place of inbound tourism only, it gave due consideration to domestic tourism development. As a result, China National Tourism Administration, the government body responsible for
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11 This is stated in the State Council’s document (dated on 10 October 1981) entitled Decision on Enhancing the Work of Tourism.
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recognized in the Provisional Regulations of Travel Agency issued by the State Council the same year.
However, in this period, the attitude towards domestic tourism was different between the central and local governments. The central government focused on the inbound tourism development in the aim of increasing foreign exchange, while the local government had more interests in promoting domestic tourism, since the local government hardly had any right to use the foreign exchange earned, and had to have it turned over to the central authority. Moreover, domestic tourism played a more important role in increasing local wealth and promoting local economic growth and jobs.
The period of equal importance between inbound and domestic tourism
Since 1995 when the 5-day week system began to take effect and 1999 in particular when the long-holiday system was introduced, the significance of domestic tourism has been widely recognized in terms of both economic and social benefits. In many localities, domestic tourism has been considered as the growth point of the economy, although inbound tourism was given priority in the country’s tourism development until 2008. During this period, tourism-oriented infrastructure such as express ways, airports and flights, and railway lines were greatly improved, and service facilities such a tourist attractions, accommodations, coaches, etc were added to meet the domestic tourism boom.
From 1995 until 2008, China’s tourism policy was stated, in terms of market priority, as follows: 1. Give major efforts to developing inbound tourism; 2. develop domestic tourism in a multifaceted way; 3. develop outbound tourism in a normative way.
To sum up, the significance of domestic tourism has been recognized, and more supportive policies have been issued to promote this sector.
The period of priority
Against the background of gloomy growth of international tourism caused by the deteriorating global financial crisis since 2008 and the policy adjustments by China’s central government to stimulate the domestic demand, domestic tourism has been given the http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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1. Give major efforts to developing domestic tourism; 2. develop inbound tourism in an active way; 3. develop outbound tourism in an orderly way.
And this policy was later reconfirmed in the document such as The Opinions of the State Council on Speeding up the Development of the Tourism Industry in December 2009, and The Twelfth Five-Year Plan for National Economic and Social Development of the People’s Republic China in 2011. The former one states that to focus on the development of domestic tourism, actively promote inbound tourism, and develop outbound tourism in an orderly way, and the latter one states that to develop domestic tourism in a multifaceted way, develop inbound tourism in an active way, and develop outbound tourism in a normative way. The State Council set the tone for repositioning of the national tourism policy in its document issued in December 2009 entitled Opinions of the State Council on Accelerating the Development of Tourism Industry stating that “to make the tourism industry a strategic backbone industry of the national economy and make it a more satisfactory modern service industry to the people.”12
Ironically, China and the Western countries have put an emphasis on domestic tourism at about the same time. However, it can only be called a coincidence. In China, this shift of emphasis onto domestic tourism is made initiatively as a long-term strategy for sound development, while in Europe or America, it is forced passively by the unexpected long and grave financial crisis as a temporary response.
3) Major Measures Taken for Stimulating Domestic Tourism
Since mid-1990s, Chinese governments, both central and local, have introduced a series of measures to stimulate domestic tourism. The major measures include:
Long-holiday – China’s innovation
The most important of all measures is the readjustment of national holiday arrangement. In 1995, China started the 5-day week, earlier than Hong Kong, Japan and the Republic of Korea in Asia, and in 1999, the long holiday system was introduced. This is an innovation indeed. Accordingly, the number of public holidays increased to 11 days, creating 3 week- long holiday by bridging weekends, namely, the long holidays around the Spring Festival,
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12 State Council: Opinions of the State Council on Accelerating the Development of Tourism Industry (1 December 2009), at http://en.pkulaw.cn/display.aspx?cgid=124305&lib=law
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As a result, the holiday readjustment, not only provides the residents with more free time, but also helps change their long-standing concept of holiday and tourism. In addition to the readjustment of public holidays, the State Council also issued in 2008 the Regulations for Workers’ Paid Leave. Therefore, employees may enjoy more room to make their own holidays.
Table 3.5 China’s major public holiday adjustments and paid holiday regulations
The first adjustment for public The second adjustment for public Major changes holidays in 1999 holidays in 2008
New Year (1 January): 1 day New Year (1 January): 1 day
Spring Festival (January or February.): Spring Festival : 3 days*# 3 days*# Qingming Festival (April): 1 day# New Labour Day (1-3 May): 3 days* Labour Day (1 May): 1 day Two days less Duanwu Festival (June): 1 day# New Moon Festival (September): 1 day# New National Day (1-3 October): 3 days* National Day (1-3 October): 3 days* Total: 10 days Total: 11 days
Note: *) Festivals with 3 days off are made a week-long holiday by combining the weekends around, they are known as the “golden week”; #) The date for traditional festival is set according to the lunar calendar, differing each year. Traditionally, Qingming Festival is the Tomb-sweeping festival, Duanwu festival is the Dragon Boat festival, and the Moon Festival falls at mid-August in Lunar calendar. Paid Annual Leave Regulations issued by the State Council in 2007 states: According to the Labour Law and the Civil Service Law, all employees who continuously work for a year or more in the government departments, social organizations, enterprises, institutions, the people-run non-enterprise units and individual businesses with employees are entitled to the paid annual leave. Employees who have worked for a full year or less than 10 year may have 5 days as paid leave annually; those who have worked for 10 years or less than 20 years enjoy 10 days off, and those who have worked for full 10 years may have 15 days off.
Various programmes to promote tourism and leisure activities
In order to promote domestic tourism, national and local governments have worked out a variety of programmes to encourage and facilitate domestic tourism activities. In order to boost tourism responding to the expanding international financial crisis, issue of tourism voucher was a very popular practice in the country between 2008 and 2009. According to incomplete statistics, almost all 31 provinces in China had issued and distributed various tourism vouchers (or coupons) in kind and in quantity. According to the survey of People’s Bank of China (the central bank of the country), up to 31 May 2009, the total value of http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
13 Gao, Shunli (2010), ‘Course and effect of China’s tourism-related consumption coupons campaign’, in G. Zhang,et al (eds.), China’s Tourism Development: Analysis and Forecast, Social Sciences Academic Press, Beijing, p. 124.
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the campaign was debatable; however, it was the first bold attempt by the government to boost domestic tourism at a time of crisis. Well-developed provinces and cities such as Guangdong, Shandong, Zhejiang, Jiangsu and Beijing have issued their tourism and leisure development programme, implementing the paid holiday system, practicing flexible holiday arrangements, and disseminating low-priced or free entrance to tourist attractions. The central government plans to prepare the National Tourism and Leisure Programme for the same purpose. Approved by the State Council, China Tourism Day was named in 2011 as May 19 with the aim to popularize the significance of tourism and inspire the participation of tourism and leisure activities of the masses.
Free entry to most of public museums and other cultural establishments
Many cities in China have good and numerous museums, big and small, comprehensive and special, historical and modern. Early in the new century, some museums started to practice free entrance system, and in 2008, the central government by steps decided to open most of the museums and memorial halls with gratis entrance. By the end of 2011, 1,804 out of 3,415 museums in the country have been open with free entrance, attracting more than 500 million visitors annually. These museums have been major attractions for the general public, particularly for students and low-income residents. By now, a 3-dimentional transportation network to meet the increasing demand of domestic tourism is taking shape in the country.
Tourism-oriented transportation system
In order to make domestic travels easier, various transportation systems have created their special arrangements for visitors. The railway department started dusk-to-dawn runs between major cities particularly between the country’s capital Beijing to the provincial capitals, and among provincial capital cities and special tourist trains to key tourist destinations or famous attractions some years ago, and introduced high-speed lines in 2010. The major airlines have set up shuttles, feeder lines and charters to meet the domestic demand. With the expanding expressway network, tourist buses have become the major means of transportation for short breaks. With the increase of traffic capacity, people enjoy more choices and lower costs for domestic travels.
Budget hotel development boom
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13th and 15th on the world 325 hotel list in 2010 in terms of hotel rooms. These budget hotels have become favourite lodging facilities for domestic independent tourists nowadays, who have become the mainstay of growth of domestic tourism.
Preferential duty-free shopping area Shopping is one of the most significant incentives for some wealthy tourists. The island Hainan Province has been given preferential policy to boost its tourism by the central government so that domestic tourists to the province may enjoy offshore duty-free shopping, and this is the only province in the country with this facility. Hainan province, featuring fine sea beaches and tropical climate, was officially defined as an international tourism island by the State Council, and this is one of the serious measures taken to help the under-developed island revitalize its economic growth.
4) Specific Markets
Within some 25 years of development, China’s domestic tourism has become the main sector of tourism in the country with the market being well segmented, namely:
The mass market for sightseeing This is the largest market seeking for famous places of interests, particularly well-known mountains, rivers, historical sites and large cities. The main purpose for their visits is to see the places learnt in school, or from literature and movies, to fulfil their life dreams.
The family market With more holidays and the annual long-holiday arrangement, people now love to have a holiday together with family members to resorts, amusement parks and other man-made attractions. In particular, more parents like to make their kids happy and gay, because most couples have only one child.
The urban dwellers market With the fast urbanization, many people have gathered in the large cities, and the urban dwellers like to leave the crowded and heavily-stressed life for a change during the weekends or holidays, to have a more relaxed, fresh and quiet rural life experience.
The young “donkey fellow” travellers
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The holiday makers Thanks to the readjusted holiday system and other government policies, the market of holiday makers is growing in big strides. Beach resorts are very popular for holiday makers both in summer and winter. Owing to the seasonal differences in the large country geographically they have a wide choice of resorts to choose from.
5) Specific Products
The priority shift of tourism market in China has helped diversify the tourist products for domestic tourism. Again these new products have attracted more visitors of various kinds. The most popular products for the domestic tourists include the following:
Rural tourism This sector represents the urban tourists who visit rural areas for a change of life, to enjoy the scene of the countryside, experience the rural daily life, and taste the farmers’ food and other fresh farm produce. Surrounding the large cities, suburban farmers use their own spare or purpose-built houses to accommodate the city visitors at weekends to make money. Nongjiale, literally “Happy Farmhouse”, a new form of entertainment facilities in the countryside, can be found everywhere in the country attracting more and more tourists in the nearby cities.
Cultural tourism China is a large country with over 50 nationalities and a variety of rich cultures. As a proverb goes “travelling thousands of miles is better than reading thousands of books” in terms of gaining knowledge and experience. Therefore, cultural tourism, such as visit to heritage sites and various ethnic areas is very popular among the Chinese people. It is a good way for people to know and understand their own country and culture. Therefore, many themed package tours or routes have been well designed for the domestic tourist market.
“Red tourism” This is a very unique tourist product that emerged since 2004 when the central government proclaimed the first National Programme of Red Tourism Development. The red tourism stands for tourist activities with places and monuments of revolutionary interests as the main attraction in the aim of combining the education of revolutionary tradition and history together with physical relaxation. In fact, red tourism is a kind of cultural tourism. Due to the
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Event tourism In recent years, China has held a number of world-class events. The aim of holding these great events is not only for tourism development, however, the fact shows that these events have produced momentous positive impacts on China’s tourism development, domestic tourism included. The most influential events include the Beijing Olympic Games in 2008, Shanghai Expo in 2010, the Asian Games in Guangzhou in 2010 and others. The Beijing Olympic Games left for the country rich heritages which become attractions for domestic tourists for years to come, and the Expo set up a record for attracting some 70 million visitors, 94% of the visitors are domestic. Besides, great domestic events such as the 30th anniversary of the economic reform in 2008, the 60th anniversary of the People’s Republic, the 90th anniversary of the Communist Party of China, and centennial celebrations for the 1911 Revolution have boosted domestic tourism in a big way.
Frontier tourism As a large country in Asia, China shares borders with 14 countries on land, with a border line of 20,000 km, and a few countries such as Japan and Korea Peninsula are only separated by a strip of water. Therefore, border tourism has been very popular since the country is open to the outside world with improved bilateral and multilateral relationships. Very often travels to the frontier areas may combine excursions or short trips to the neighbouring countries.
3.1.3 Major Impacts of Domestic Tourism
Stimulating domestic tourism Owing to lack of foreign reserves for the country’s modernization, China started tourism with inbound tourism only for earning badly needed foreign dollars at the beginning of the economic reform in late 1970s. By and by, the shortage of foreign currency has been reduced and the problem solved, and demand of domestic tourism has increased. At the same time, the unstable world political and economic situation has resulted in a declining growth of overseas demand of tourism. Against this situation, domestic tourism has been encouraged by the government, and the long-holiday readjustment and other measures have boosted domestic tourism and holiday in a big way.
Revitalizing the economy The continuous double-digit growth of domestic tourism for the past decade or so is indeed an important impetus behind the prosperous service sector to offset the depressed
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Balancing economic development between various regions Domestic tourism spending per person or per trip is lower than that of the incoming visitors, however, the domestic market is vast, and the spending of domestic tourists is well spread geographically. Since the tourist flow is often from the developed to under-developed places, the tourist spending is a shift of wealth from the well-off to the worse-off regions. In the case of China where exists an obvious economic disparity between the urban and rural areas, the East and West regions, and the central and frontier regions, domestic tourism helps to balance the economic development in the country.
Creating more jobs Owing to the tremendous economic restructuring during the prolonged economic reform, underemployment has been a great concern of the government in the rural areas and resource-depleted cities. The flourishing domestic tourism market helps these under- developed regions a lot by making the best use of local tourism resources and setting up small enterprises for providing tourism services. Most of the “Happy Farmhouses” are run by local farmers with their own houses and produce, so that they do not have to go out to work as casual labourers to make a living. According to the report, during the 6 year period from 2004 to 2010, the “red tourism” attractions received 1.35 billion visitors in the country. In 2010, the number of “red tourism” visitors was over 430 million, making up 20% of total domestic trips. As a result, in that year, the red tourism sector created direct jobs for 910,000 people, and indirect employment of over 3.7 million14, mostly in the rural areas.
Promoting cultural prosperity To meet the increasing needs of domestic tourism, destinations have created more attractions and programmes with their specific resources. Long holiday arrangements for the National Day and the Spring Festival, and short breaks for the traditional festivals have helped greatly rejuvenate and enliven the traditional and local cultures, and economic benefits have stimulated the enthusiasm to reserve and develop the ethnic cultures in the minority areas. As a result, domestic tourism really serves as an impetus for the country’s cultural prosperity.
Promoting social harmony Domestic tourism growth in recent years has greatly improved social harmony. Rural tourism has strengthened the ties between the city and countryside, ethnic tourism has improved the relationship between the Han (majority) and minority people, frontier tourism has enhanced the development in the remote and far-end regions and red tourism really has aroused the spirit of the people to rebuild a powerful and strong country with a desire to
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14 Cui, P. (2011), ‘Red tourism enjoys popular support’, People’s Daily, 15 June, p.4
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3.1.4 Discussion
Domestic tourism has developed very rapidly, and it has become the mainstay of China’s tourism thanks to the government support and encouragement. There are some major problems that should be noted and need to be solved in order to make the country’s tourism develop smoothly and healthily. The following issues should be considered:
“Golden Week” and a “Complete Mess”
The week-long holiday created by the government from 1999 is known in China as “golden weeks of tourism”. This innovative system has promoted domestic tourism greatly, in terms of both trips and spending. However, the escalated peak of traffic has put a heavy burden on the transportation system, and great pressure for tourism attractions as well as other service providers. Further adjustment of the long holiday system, i.e. two week-long holidays a year instead of three, and some three-day short breaks being added, can hardly help much to reduce the over-crowded traffic during these periods. The Spring Festival holiday in particular has become a great headache, and to transport the traffic flow in its millions is known as a Spring Rush, or a “national movement”. Normal rather than good services cannot be ensured. Therefore, the “golden week” is jokingly called as “a pot of porridge” (a complete mess). In fact, it is really constructive rather than sustainable, and indeed this requires an immediate solution.
Table 3.6 Golden Week Holiday domestic tips and spending, 1999-2011 Spring Festival Holiday May Day Holiday National Day Holiday Year Trips CNY Trips CNY Trips CNY Remarks (million) (billion) (million) (billion) (million) (billion) 1999 28.00 14.10 2000 20.00 16.30 46.00 18.1 59.80 23.00 2001 44.96 19.80 73.76 28.8 63.97 24.98 2002 51.58 22.80 87.10 33.1 80.71 30.60 2003 54.97 25.76 89.99 34.60 SARS 2004 63.29 28.96 104.00 39.0 101.00 39.70 2005 69.02 31.30 121.00 46.7 111.00 46.30 2006 78.32 36.80 146.00 58.5 133.00 55.90 2007 92.20 43.80 179.00 73.6 146.00 64.20 2008 87.37 39.30 178.00 79.60 May Day 2009 109.00 50.93 228.00 100.70 Holiday 2010 125.00 64.62 254.00 116.60 cancelled 2011 153.00 82.05 302.00 145.80 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Rising fees for tourism attraction admission
From 1997, China officially decided to practice the single admission prices for all tourist attractions regardless of national or alien visitors. And during the past two decades or so, the admission ticket price of the tourist attractions have increased greatly, particularly in the man-made attractions and the world heritage sites. In the first decade of the new century, a few admission price booms have been witnessed countrywide, with an increase rate of 20- 30% each time, although the central government tries its best to control it. Nowadays, the admission price15 for most world heritage sites is over CNY 100-200 or more, and that of the man-made attractions is even higher.16 As a result, more and more tourists try to avoid such expensive attractions. The central government has introduced new regulations to lower or grant free admission for the public to the cultural and educational sites by steps, and to control the price for other tourist attractions and services thereby, providing more opportunities for the general public.
Table 3.7 Selected examples for of admission fee rise Attractions Admission fee before Admission fee after Change (%) Zhangjiajie (Hunan) 225 248 10 Wuyishan(Fujian) 220 250 14 Wutaishan(Shanxi) 90 168 87 Jinci Temple(Shanxi) 40 70 75 Lingshan 33 88 167 Buddha(Jiangsu) Huanglong(Sichuan) 110 200 82 Jiuzhaigou(Sichuan) 145 220 57 Mt Tai(Shandong) 100 125 25 Mt.Lu(Jiangxi) 135 180 33 Mt.Lao(Shandong) 50 70 40 Home of 105 150 49 Confucius(Shandong) Mt.Yuntai (Henan) 120 150 25 Kanasi (Xinjiang) 150 180 20 Heavenly Pool 100 110 10 (Xinjiang) Mt.Putuo (Zhejiang) 120 180 50 Mt.Emei (Sichuan) 120 150 25 Mogao Grottoes 150 180 20 (Gansu)
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Attractions Admission fee before Admission fee after Change (%) Bird Island (Qinghai) 48 138 188 Budala Palace(Tibet) 100 200 100 Source: ‘China’s Tourism Development (2007~2008): Present Situation and Future Perspectives’(2008) in Zhang Guangrui(ed.), 2008 Green Book of China’s Tourism, Social Sciences Academic Press (China), Beijing, pp. 36-37.
Top-end hotels vs. mass market demand
In the past decade or so, there is a reverse growth between accommodation supply and demand. On the demand side, during the 10 years between 2001 and 2010, the number of domestic tourist trips increased annually by 10.4%, from 784 million to 2.1 billion, and during the same time, the number of inbound overnight tourists increased annually by 5.4% ,from 33.167 million to 55.66 million. So the growth rate of domestic trip is double that of inbound tourists. On the supply side, during the same period, the 4 and 5 star hotel rooms increased by 15.6% yearly from 156,400 to 667,271, making up 19% and 39% respectively of the country’s total star hotel rooms. The 1 and 2 star hotel rooms reduced by 0.2%, from 332,400 to 327,845, making up 40.7% and 19% respectively. Obviously, the mass domestic tourist market demands more low-end rather than top-end hotels. Thanks to the private sector, more budget hotels have been converted or built to meet the increasing needs of the domestic market demand; however, this sector needs closer attention and support by the government.
Travel agencies and travel traps
At the beginning of the domestic boom, more people wished to make their own arrangement for travels especially up to 1995, package tour participants made up less than 10% of all domestic tourists. Owing to the possible benefits of low cost flights and convenience in arrangements, more and more people prefer to buy package tours for their travels and holidays at the last minute. Also due to the fact that none of the tourists and business operators is mature, travel agencies often take advantage of tourists with insufficient experience and information, preying upon tourists who are merely curious about the promotional prices for the tours advertised. The problems of so-called “Zero-Charge Tour” or even “Minus Fee Tour" are rampant in many destinations. Shopping while travelling is often regarded as traps worked out by joint efforts of travel agents and shop owners. In the travel business sector now in China, lack of honesty is one of the big problems.
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Tourism demand of rural population
Very often, the farmers, who constitute a majority of the rural population, making up of half of the country’s total, are marginalized in tourism decision making. When rural tourism is mentioned, it merely means the city dwellers’ holiday in the rural areas, taking the rural scenery, folklore, lifestyle and farm produce as attractions. More often than not the demand of farmers for travel and tourism is neglected. The fact is that the new generation of farmers has not only the economic resource, but also the desire to see the world and enjoy different experience outside their homes, though their tourist preference and interests differ widely from the city dwellers. The government and the industry should pay close attention to their tourism demand that has great potential.
3.1.5 Conclusion: Future Trends and Policy Recommendations
China’s domestic tourism may keep growing at a high rate in the years to come with more trips and spending, since the era of mass tourism. In terms of domestic tourism development, China has two advantages that other countries can hardly match with, i.e. the country’s area and population. The area means rich resources, and the population means market. Once the people have the conditions and desire to travel, the market will grow so and so will the industry. Facts prove that as a large economy, domestic consumption is always a key for the country’s economic growth. Therefore to stimulate domestic demand is a long-term strategy rather than a temporary solution, and it is the same to tourism development in China.
However, there are two important issues to be noted for domestic tourism development in China in the future. One of them is that China has to keep a close tab of domestic tourism development, not only for constant rapid grow, but also for keeping the development sustainable. And this can only be achieved with the joint efforts of all stakeholders. The other is that economic growth is not the one and only goal of domestic tourism development. The more important function should be the improvement of the public welfare, not only for some but also for all members of the society. These two issues provide a long- term goal to fulfil and a great challenge to respond simultaneously.
Based on the analysis above, the following policy recommendations are made for the government in domestic tourism development: 1. To meet the rapid growth of mass tourism, more efforts should be made to build and
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the provision of public tourism services such as easy information access, mass transportation, various types of amenities and accommodations so that the growing tourists and visitors may find it easy to travel and holiday by themselves. In fact, a part of the reasons for illegal operations and rip-offs in travel business is due to the lack of sufficient public services. 2. To help and encourage the operators to change the traditional business modes in order to develop a sound tourism economy. Nowadays, the tourist attractions are too over-dependent on entrance fee for their revenue, and make the entrance price fee as the sole or key means to earn quick money. To control the price increase by administrative means may not last long, and developing more innovative products and competitive services should be the long-term strategy to boost the industry. 3. To encourage and advocate new types of tourism modes to achieve sustainable tourism development. The newly emerging tourism markets should be led to a more sustainable way of travel and tourism, not to blindly hunt the luxury market lat leads to wasteful consumption. The tourist products, free of pollution, low cost of energy, and less threats to the nature and culture should be supported and encouraged. Ecotourism, such as travel afoot, camping, volunteer tourism, and creative tourism are to be recommended in a big way. Besides, the role of non-government organizations, which are rather weak in the country, should be recognized and emphasized. 4. The products for domestic tourists should be diversified and unique to meet their multiple demands. For the time-being, there is a trend of homogenization in product development, creating similar attractions and facilities in different destinations and for all the market segments. The newly emerging markets, such as senior citizens, the young “digital natives” and well-off farmers may challenge the conventional tourist service producers and operators. 5. To maintain honest operation and good market ethics is the most urgent issue for the government at various levels in terms of tourism development. The central government has repositioned the tourism industry as a modern service industry that better meets the aspirations of the general public. The solution to the existing problems in business honesty and market order is the responsibility of joint efforts by the government, trade associations and society at large.
The inspiring remarks made by Mr. Taleb Rifai, Secretary-General of UNWTO suggest that the coming decade will be the decade of travel and tourism17, and the leader of the China’s tourism administration believes that the forthcoming decade is the gold times for tourism. Therefore, there is reason to believe that China’s domestic tourism may have a sound and steady growth in the years to come, and its impacts will be great on both national economy and social life in the country. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
17 Taleb Rifai: The Decade of Travel and Tourism, remarks made at ITB, Berlin, Germany, March 2011
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References
CNTA (2010, 2009), The Yearbook of China Tourism Statistics, China Tourism Press, Beijing, China. He, G. (1999a), New Century, New Industry and New Growth, China Tourism Press, Beijing, China. He, G. (1999b), 50 Years of China’s Tourist Industry, China Tourism Press, Beijing, China. World Economic Forum (2011), The Travel and Tourism Competitiveness Report 2011, Geneva, Switzerland. World Economic Forum (2011), The Global Competitiveness Report 2011-2012, Geneva, Switzerland. Zhang, G., et al., Green Book of China’s Tourism (2010, 2009, 2008, 2002), Social Sciences Academic Press, Beijing, China. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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3.2 Analyzing the Domestic Tourist Markets of China: A Case Study of Guilin By Professor Jigang Bao and Dr Yueying Xu
3.2.1 Introduction
With the largest population in the world, China has the biggest domestic tourism market and its domestic tourism industry has a great potential for development. The important role of domestic tourism in the nation’s economy gets more and more apparent in the new century as China is trying to transform the export-oriented economy to a domestic-oriented one. Recent statistics released by the China National Tourism Administration (CNTA) revealed that the number of domestic visitors in 2010 totalled 2.103 billion with an increase of 10.60% over the previous year; the total income of domestic tourism amounted to CNY 1.258 trillion with an increase of 23.50% over 2009; and the average domestic tourism expenditure per capita was CNY 598.20, an increase of 11.70% over 2009. China is witnessing a steady and rapid growth in the domestic tourism market.
Guilin, a Southwestern city of China, is located in the North of the Guangxi Zhuang Autonomous Region (see figure 3.2). It is one of the earliest and the most well-known tourism destinations in the nation. Enjoying the reputation of having the most fantastic natural landscapes not only in China but also abroad, Guilin’s tourism development started in 1973 when the city decided to open to foreign tourists. With the influence of a textbook article in elementary school, the image of ‘Guilin has the Number1 natural landscapes in the world’ has been engraved in the minds of generations of Chinese tourists. In fact, as shown in figure 3.3, nearly 94% of Chinese people heard about Guilin before or during their secondary school. Therefore, Guilin is one of the must-visit domestic destinations among most Chinese people.
The tourism development of Guilin has gone through ups and downs for nearly three decades, hand in hand with China’s tourism development. In a sense, Guilin tourism has been the miniature and the reflector of China’s tourism development (Bao et. al., 1999). Guilin is therefore chosen most representative case study to analyze the domestic tourist markets of China. As one of the important research tools in social science including psychological, sociology, business, and planning (Yin, 1983), case studies allow an investigation to retain the holistic and meaningful characteristics of real-life events (Yin, 1994). Examination of Guilin domestic tourism development with a focus on the domestic tourist markets and the impacts brought by domestic tourism development will provide a http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 3.2 Map of China
Source: Baidu Image, www.image.baidu.com
Figure 3.3 Chinese people’s first time to hear about Guilin, 2008 (%)
2.0 4.1
Before primary school
During primary school or 32.4 secondary school During college or university 61.5
At work
Source: The Master Plan of Tourism Development for Guilin (Revision), 2008-2020
A research group, led by the first author of the current study, of the Centre of Tourism Planning and Research of Sun Yat-sen University of China has been monitoring the tourism development of Guilin since the 1990s. The researchers collected large-scale data on the domestic tourists to Guilin twice, one in 1999 (The sample size was over 90,000.) and the other in 2008 (The sample size was over 40,000). Analysis on these data, together with the secondary data from sources such as Guilin Tourism Administration (GLTA) and China National Tourism Administration (CNTA), provides evidences of the changing patterns of the tourist markets for Guilin’s domestic tourism development, which further suggests a developing pattern of China’s domestic tourism development. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Part II: A review of the literature, including studies on the domestic tourism development of both China and Guilin, with a focus on theories related to tourists demand. Part III: The methodology of the study including the case study research strategy and the data collection procedures. Part IV: Findings based on the analysis of both the primary and secondary data. Part V: Discussion, conclusions, and implications drawn from the findings. Part VI: The bibliography.
3.2.2 Literature Review
1) China’s Domestic Tourism
Study on Chinese domestic tourism development has received vast attention from Chinese scholars since the late 1980s. Up till today, there are numerous researches on Chinese domestic tourism, including studies on Chinese domestic tourism consumption (e.g. Zhao and Quan, 2011; Long and Li, 2012), social impacts of domestic tourism development (e.g. Liu, 2010), and the characteristics and forecasting of domestic tourism demands (e.g. Zhu, Fu, and Long, 2011; Zhang, 2002). Searching the database website of Chinese journal articles from 1979 to 2012 with the keywords of ‘domestic tourism’ results in a total of 763 articles (CNKI, 2012). Overall, many of these studies on China’s domestic tourism are not deep enough in terms of either contents or methodological strategies. Many of the conceptual studies are immature in theory development only trying to summarize activities in the tourism industry or just reviewing the literature of Western theories and studies. Some empirical studies are of low quality without support of sound evidence and do not have much value. With that said, however, there are some empirical studies on China’s domestic tourism worth noting. These studies are presented as follows:
Zhao and Quan’s (2011) study shows that there is a long-term equilibrium relationship between domestic tourism consumption and economic growth in China: in the short term, the driving force of domestic tourism consumption on economic growth is weaker than that of the economic growth on domestic tourism consumption. However, in the long term, the relationship is turned around and the impact of tourism consumption on economic growth is stronger, compared to impact of economic growth on tourism consumption. The study provides evidence of China’s domestic tourism’s significant contribution to the economic development. And the result conforms to Liu’s study (2010) which also found that domestic tourism consumption stimulated the economic growth significantly from quantitative
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categorized according to scores on three variables, namely tourism motivation, tourism involvement, and factors influencing destination choice. The authors found that the three types of tourists have different demographic characteristics. For example, active tourists tend to be well-educated females who are aged between 25 and 45 years and who are in good health, while most negative-typed tourists were males of over 55 years, poorly educated with lower income. It was also found that the three types of tourists differed on some tourism behaviours such as attitudes to tourism, tourism products/landscapes preferences, frequency of trips, and per capita consumption, etc.
With regard to the domestic tourism demand, Zhu et al. (2009) claim that discretionary income per capita, price, and leisure time are still the major factors influencing China’s domestic tourism demand. They analyzed data from 1993 to 2009 on three factors of per capita income of Chinese residents, domestic tourist arrivals, and per capita consumption of domestic tourists. The results show that tourism by rural residents increased faster than that of urban residents. Trips made by rural tourists grew by nearly 100% while trips made by urban tourists grew by 43% from 1993 to 2009. Therefore, the rural market has a great potential for domestic tourism development and tourism supply should try to meet the needs of rural tourists.
Outside of China, a few scholars paid attention to the domestic tourism of China. An early case study on China’s domestic tourism was done by Dr. Wen in 1997. In the paper, Wen (1997) summarized the background and the features of China’s domestic tourism development, analyzed favourable conditions for growth, and provided forecasts for the trends in China’s domestic tourism development. Noting the dramatic development of domestic tourism and its implications to Chinese economic and social development, Wen called for increased investment in tourism, training for tourism personnel, fostering of tourism enterprises, and modernization of tourism management in China. By using a comparison approach, Wang and Qu’s (2004) study examines the features of China’s domestic tourism and compares these features with the domestic tourism of the United States of America. The aspects of domestic tourism that have been compared between China and the United States include: sources of information used by tourists, tourists’ transport and lodging pattern, tourists’ travelling activities and spending patterns, and the role of government in domestic tourism. The authors found that: 1) Chinese domestic tourists are mainly dependent on traditional and official media for tourist information of domestic tourism; 2) the major transport tools used by Chinese are mainly public buses, trains and passenger airplanes; 3) a majority of Chinese domestic tourists live in relatives’ or friends’ homes and http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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5) transportation and food and beverages are the two highest spending items for Chinese domestic tourists; and 6) China’s tourism authorities have macro control and deep involvement in tourism development from policy making to destination promotion. From today’s observation, most of the findings from the study seem somewhat out-of-dated because many changes have taken places in China’s tourism development.
2) Guilin’s Domestic Tourism Development
As a well-known tourism destination with a long history of tourism development, research on Guilin tourism is also voluminous. Interested researchers investigate the tourist behaviours; study the planning and management issues, and explore the future development direction for Guilin tourism. Among the study of Guilin domestic tourism, Bao et al. (2002) and Li et al. (2009) devoted their efforts to the domestic tourist markets for Guilin. Bao et al. (2002) investigated the evolvement of spatial structure of the domestic tourist origins for Guilin from 1987 to 1999. The authors found that Guilin’s tourist origins have expanded and have become more stable, while the spatial distribution has become less concentrated. The study also provided explanations for the developing pattern in domestic tourist origins. Likewise, Li et al. (2009) examined the changes in domestic tourist markets before and after the financial crisis in 2008. By collecting and analyzing primary data from domestic tourists visiting Guilin during 2008 and 2009, the study found that tourist origins, tourism consumption and tourist satisfaction had changed within the two years. The top tourist origins for Guilin remained in the list but the relevant importance of them to Guilin changed from 2008 to 2009. Guangxi Autonomous Region and Hunan Province experienced big drops in the percentage of tourists while Guangdong Province, Shandong Province and Hubei Province caught up.
Study on the demand side of tourism help us learn more about the characteristics and the needs of tourists, gain knowledge about how to serve them and to improve their tourism experience. Learning about the changes in tourist market can provide us insights to forecast the future trends in domestic tourism.
3.2.3 Methodology
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country with the world’s largest population and its domestic tourism development is fast and complicated. Due to reasons such as the imbalanced development levels among different regions/provinces/cities and the insufficiency of valid or reliable statistical data, it would be difficult to research and draw conclusions on China’s domestic tourism by applying other social science research strategies such as survey or experiment. Rather, thorough study on a representative case of China’s tourism destination might provide more meaningful and implicative insights related to domestic tourism development in the whole nation. Guilin is chosen because it is a popular tourism destination for Chinese tourists and it has a long history of tourism development. It could be considered the miniature of China’s tourism development. The domestic tourism development of Guilin can represent many other tourism destinations in China.
The data and samples The study employs both secondary data and primary data. Secondary data were collected from sources such as Guilin Tourism Administration, Guilin Year Book which is issued every year and includes a special part of Guilin tourism statistics, and the Chinese Tourism Year Book by China National Tourism Administration (CNTA).
Primary data were collected in Guilin for two years, 1999 and 2007. The research group of the Centre of Tourism Planning and Research of Sun Yat-sen University was responsible for the tourism planning for Guilin and had been monitoring the development of domestic tourism in Guilin. Two large samples of domestic tourists were obtained in 1999 and 2007. In 1999, the research group collected data from four accommodation facilities in Guilin by obtaining all their guest registration forms for one whole year from November 1998 to October 1999. These four hotels included two lower-rated ones (Taihe Hotel and Nanyuan Hotel) and two mid-ranged ones (Dangui Hotel and Guihu Hotel). Up-scaled hotels where few Chinese domestic tourists could afford at that time were not included in the data. The total sample size was 91,607. In 2007, the research group again collected the guest registration forms from four hotels, three of which remained the same as in 1999. But a five- star hotel (Lijiang Waterfall Hotel) replaced the original out-of-date two-star hotel (Taihe) to reflect the change in the components of domestic tourists visiting Guilin. All the guest registration forms for the whole year in 2006 were collected from these four hotels. Among them, Nanyuan Hotel mostly accommodates low-end tourists; Guihu Hotel and Dangui Hotel accommodate mid-ranged tourists; and Lijiang Waterfall Hotel accommodates high- end tourists. The total sample size was 40,342. The two samples are comparable because the measurements remain the same for the two data-collecting years. Meanwhile, with the large sizes covering all the major market segments, the two samples could stand for the whole domestic tourist markets for Guilin. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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3.2.4 Findings
1) Guilin’s Tourism Development
Looking at the industrial structure of Guilin, we can find the developing speed of tourism as part of the tertiary industry slows down in recent years, as compared to that of the secondary industry (see figure 3.4). Meanwhile, the contribution of tourism to Guilin’s gross domestic product (GDP) is very unstable. In good years of fast tourism development such as the year of 2000, the contribution rate of tourism to GDP could reach as high as nearly 40%. While in bad years when unexpected events happen, tourism would be a drag on economic development. For example in 2003 after the event of SARS, the contribution rate of tourism to GDP was -48.73%. The instability is actually due to the nature of tourism as an industry sector. Since tourism is such an important sector in Guilin’s economy, its influence, either positive or negative, makes a great difference.
Figure 3.4 Tourism and manufacturing contribution to GDP in Guilin, 1997-2006 (%)
80%
60%
40% 20% 0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -20%
-40%
-60%
Tourism Contribution to GDP (%) Manufacturing Contribution to GDP (%)
Source: The Yearbook of Guilin Tourism Statistic (1997-2006)
Generally, Guilin’s tourism industry had gone through three major phases within the first two decades of development since 1973: Phase I is from 1973 to 1977. During this period, the tourism industry of China was mainly related to the reception of foreigners, so did tourism in Guilin. Phase II is from 1978-1987. Since 1978 when China started to enforce the reform and opening-up strategies, tourism had been developed as an industry and Guilin tourism began to take shape as an important sector of the tertiary industry.
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In 1997, the financial crisis hit Asia, followed by the flood tragedy in the south of China in 1998. These two one-off events had serious negative impacts on Guilin tourism. Both international and domestic tourist arrivals dropped dramatically. However, the amount of tourists bounced back very soon after the events. In 1999 and 2000, both inbound and domestic tourists arrivals grew at a mild pace and it was a sign for Guilin tourism entering the second lifecycle of development, according to the Master Plan of Tourism Development for Guilin (2001-2020) by Guilin Tourism Administration and the Centre of Tourism Planning and Research of Sun Yat-sen University (2002).
The development of tourism in Guilin since 2000 can also been divided into three phases: slow-growth phase from 2000 to 2002; the setback due to the SARS (Severe Acute Respiratory Syndrome) event and the recovery from 2003 to 2004; and the full-fledged development phase (also called the maturity phase) since 2005. Up till the end of 2007, Guilin had two scenic spots of National Grade 5A (the highest rated scenic spots), eleven scenic spots of National Grade 4A, and eight scenic spots of National Grade 3A. As for accommodation facilities, it had 68 star-rated hotels with 11,070 rooms and 21,396 beds.
The maturity phase of Guilin tourism development from 2005 to the present is characterized by the following features: 1. Transportation has been greatly improved. 2. The tourism management tends to be more mature. 3. There are more and deeper cooperation in tourism between Guilin and other cities both at home and abroad. 4. Destination marketing is getting more and more attention. 5. Tourism products are more diversified and sophisticated. 6. Concepts of systematic tourism development are getting more emphasis and the public service system, safety and security alert system, and holiday service system have been established. 7. Research on tourism has gained unprecedented attention and development.
All of the above characteristics, together with the infrastructure and facilities, prepare Guilin well as not only an ideal international tourism destination but also a dreamed domestic tourism destination.
2) Guilin’s Domestic Tourism Development
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setback in 2003 because of SARS. Guilin’s domestic tourism developed currently with China’s domestic tourism. During the same period, Guilin, as one of the most attractive destinations, also experienced the fast growth. Its domestic tourist arrivals increased from 8.38 million from 1999 to 15.02 million in 2008 (see table 3.8).
Table 3.8 Domestic tourists for Guilin and Mainland China, 1999-2008 Year Domestic tourists for Yearly growth Domestic tourists for Yearly growth (%) Guilin (%) China (× 10,000) (× 100 million)
1999 838 22.69 7.19 3.60
2000 868 3.62 7.44 3.48
2001 916 5.48 7.84 5.38
2002 997 8.89 8.78 11.99
2003 812 -18.57 8.7 -0.91
2004 1,034 27.28 11.02 26.67
2005 1,105 6.90 12.12 9.98
2006 1,227 11.07 13.94 15.00
2007 1,400 14.10 16.10 15.49
2008 1,502 7.1 17.12 6.3 Source: The Yearbook of Guilin Tourism Statistic (1999-2008)
Comparing the growth rate of tourist arrivals of Guilin to that of the country, however, we can find that from 2000, Guilin fell a little bit behind the national development speed in domestic markets, as showed in figure 3.5.
Figure 3.5 Growth comparision in domestic tourists between Guilin and China http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Source: The Yearbook of Guilin Tourism Statistic (1999-2008)
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In terms of revenue from domestic tourism, the growth rate in revenue started to outpace the growth rate of arrivals since 2003. The expenditure of domestic tourists to Guilin had been growing since 2001，which suggests the improving profitability of the domestic markets for Guilin tourism (see figure 3.6).
Figure 3.6 Growth rate of domestic tourism revenue and tourist arrivals in Guilin
Source: The Yearbook of Guilin Tourism Statistic (2001-2009)
3) Guilin’s Domestic Tourist Origins getting Dispersive
Changes that have happened to Guilin’s domestic tourism can also be observed from the evolution of spatial structure of its domestic tourist markets during the decade of 1999- 2007. Through decades of domestic tourism development, the spatial distribution of Guilin’s tourist origins is quite stable, with a wide array of markets and a focus on the traditional important origins.
Further examination of the domestic tourist market for Guilin at the provincial level, as illustrated in table 3.9, shows that Guangxi Autonomous Region continued to be the largest domestic tourist origin for Guilin in 2007. It means that the largest proportion of the domestic tourists is from the same province where Guilin is located. However, its importance to Guilin is on a downturn pattern. The percentage dropped from 28.69% in 1999 to 20.36% in 2007. The second largest tourist origin for Guilin, Guangdong, showed a similar pattern of shrinking in proportion to the total market, from 22.52% in 1999 to 17.68% http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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On the other hand, provinces and regions in the Yangtze River Delta (including Zhejiang, Jiangsu, and Shanghai) were becoming the major markets for Guilin’s domestic tourism as the economic development of the region was skyrocketing during the decade. In 2007, 17.96% of Guilin’s total domestic tourists were from the three origins, which was a big jump from only 10.71% in 1999. Among the three provincial origins, Zhejiang Province led the growth in tourists count.
Table 3.9 Major domestic tourist origin for Guilin in 1999 and 2007 1999 tourist origins (%) Guangxi Guangdong Hubei Hunan 28.69 22.52 4.52 4.44 Beijing Jiangsu Shanghai Zhejiang 4.10 4.04 3.41 3.25 Shandong Fujian Sichuan Henan 2.47 2.37 2.35 2.23 Liaoning Hebei Shaanxi Heilongjiang 1.68 1.35 1.25 1.24 2007 Tourist origins (%) Guangxi Guangdong Zhejiang Jiangsu 20.36 17.68 8.29 6.67 Shanghai Hunan Beijing Sichuan 5.66 5.09 5.06 4.74 Hubei Henan Shandong Yunnan 4.22 4.16 4.06 3.51 Shaanxi Jilin Anhui Heilongjiang 2.98 2.64 2.38 2.19 Source: The Master Plan of Tourism Development for Guilin (Revision) (2008-2020)
Domestic tourist origins for Guilin’s tourism were getting more and more dispersive as the industry developed over the years. This trend is also supported by quantitative evidence. To measure the spatial centrality of the tourist origins, a geographic concentration index (GCI) was calculated for Guilin. The GCI for a destination ranges from 0 to 100. A smaller index implies a more dispersive structure in tourist markets. Generally speaking, it is preferable for any destination to have a mild GCI (Lu, 1989; Bao et al. 2002). Because a very high GCI suggests the high centrality of the tourist markets, which implies the high risk for the destination relying on only a few markets. And a very low GCI means that the markets are overly dispersive and it will be hard for the destination to focus its marketing and service efforts, which in turn hurt the efficiency of tourism management. Using the formula below, the GCI of Guilin was found to drop from 43.50 in 1987 to 38.27 in 1999 and further to 27.31 in 2007. The centrality of tourist markets for Guilin is higher and there are more tourist origins for the destination, which is a good sign of stable and healthy development. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Note: G = geographic concentration index Xi = total tourist arrivals from the ith origin T = total tourist arrivals for the destination n = total number of tourist origins
4) Guilin’s Attractiveness to the Domestic Tourist Markets
Not only does Guilin have attracted tourists from more dispersive origins, but it also has attracted tourists from farther locations. Attraction Radius (AR) is an important indicator to measure the attractiveness of a tourist destination to its markets. The higher the AR value is, the larger the attractiveness of a destination, and so the farther the tourist origins (Zhang, 1999). The formula of Standard Distance developed by geographer Stephen Smith (1995) was employed to calculate the AR for Guilin in 1999 and 2007. Each standard distances between the location of central government of the tourist origin and Guilin was measured by using the length of railways in km between the two places. In the cases where railways were not available between Guilin and the origins such as Hainan or Tibet, length of highways and waterways were used. The standard distances, together with proportion of tourists from each origin among the total tourist arrivals to Guilin, were put in the Smith formula. The results showed that the AR for Guilin increased from 800.14 km in 1999 to 1,051.66 km in 2007, with an increase of 31.43%. During the decade, Guilin’s attraction radius increased and the destination had attracted domestic tourists from farther origins. The share of tourist markets within a distance of 1,500 km from Guilin had decreased while the share of markets within a distance longer than 1,500 km grew.
Note: AR = attraction radius of a destination Xi = proportion of the tourist arrivals of the ith origin di = distance between the ith origin and the destination n = total number of origins for the destination
Combining with the investigation results from the 1987 data (Bao et. al 2002) and http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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1987) to medium-distant origins (1987-1999) to long-distant origins (after 1999). Figure 3.7 shows the major domestic tourist origins of different importance for Guilin.
Figure 3.7 Major domestic tourist origins for Guilin, 2007
Note: The percentage means the proportion of tourist arrivals of each origin. For example, a 5% and higher proportion means important origins (represented as Tier 1) for Guilin. Source: The Master Plan of Tourism Development for Guilin (Revision) (2008-2020)
5) Other Characteristics of Guilin’s Domestic Tourism
As a destination featuring in picturesque natural landscapes, Guilin tourism is quite sensitive to seasonality. We can find from table 3.10 that the two one-week long national holidays in May and October brought the most domestic tourists to Guilin. Summer times during July and August are also among the peak season of Guilin when schools are closed. Winter times from November to February are the low season due to the cold weather, despite the holiday of the Spring Festival. It should be noted that after 2007 when the national holiday policy was changed, the seasonality of Guilin also changed.
Table 3.10 Tourist arrivals by month for Guilin in 2006 (× 10,000) Month Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total 50.8 72.9 109.3 113.9 160.1 97.5 129.1 134.1 115.3 178.6 101.4 75.1 arrivals Domestic 47.2 68.2 100.7 100.7 146.1 90.1 120.0 123.7 104.5 165.8 90.4 70.2 tourists http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 3.8 Monthly changes in domestic tourists for Guilin, 2006 (× 10,000)
Source: The Yearbook of Guilin Tourism Statistic (2007)
Structures of tourist origins also have some characteristics. According to the survey of a sample of 40,342 on tourists’ accommodation choices, it was found that more than half of the ‘high-end’ tourists (66.65%) staying in five-star hotels came from the origins in the well- developed regions and provinces of China such as Guangdong, Shanghai and Zhejiang. In the ‘lower-end’ accommodation category, the distribution of tourist origins was quite scattered. But tourists staying in three-star hotels rarely came from economically developed provinces.
When the gravity model (see in Bao, 1992) was applied to Guilin’s domestic tourism using the 1999 and 2007 data, the results show that population of urban residents, average income per capita, and the distance between origins and the destination are the major factors influencing Guilin’s domestic tourist demand. Specifically, the author found that 1. economic variables such as income contribute most to the tourist demand; 2. the travel time spent on train between the capital cities of tourist origins and Guilin is the second largest factor influencing the tourist demand; and 3. it is the population of urban residents instead of the total population that influences the tourist demand for Guilin.
6) Impacts of Guilin’s Domestic Tourism Development
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those that are invested and owned by foreigners or residents from outside Mainland China, including Hong Kong, China, Macau, China, and Taiwan, Province of China. On one hand, the rise of domestic tourism in Guilin has changed the customer component for the foreign- owned STEs. Research on tourists during the years from 1995-2003 showed that tourists to Yangshuo, an important town and a must-visit spot in Guilin, were mostly from the Western countries. But since 2004, the proportion of domestic tourists has been growing and nowadays they become the majority of customers for the foreign-owned STEs. On the other hand, the structure and developing model of STEs in Yangshuo have been changed due to the domestic tourism development. Before 2003, Yangshuo formed its own ‘tourism developing model’ (Li, 2003) in which foreign independent tourists and backpackers visited Yangshuo as ‘forerunners’. They loved Yangshuo so much that some of them stayed and started small enterprises. These tourists worked together with the local communities and developed the tourism products for Yangshuo. In a sense, the foreign-owned enterprises and the foreign tourists were part of the tourism products of Yangshuo. Living a desirable lifestyle was the major motivation of these people to do business and stay in Yangshuo, rather than profit maximization or business expansion. However, as more and more domestic tourists visited Yangshuo, in 2004 the government started to increase its involvement in the tourism development, encouraging and fostering more and more domestically owned enterprises. There also emerged many small enterprises owned by local residents. As a result, competition got tougher and the living space for foreign-owned STEs became squeezed. It is foreseeable that the features and operating models of these STEs will change.
Structural change of tourists to Guilin Independent tourists and backpackers tend to respect local cultures and they value interactions with the local people. They try to minimize the negative impacts of their tourism behaviours on the tourism resources and the local communities (Bao et al. 2002). However, fast domestic tourism development is usually achieved by the means of mass tourism. Large numbers of tourists flocked to Yangshuo and they challenged the receiving capability of the communities. Many of the mass domestic tourists lack the motivation to interact with the local people. They don’t show enough respect to the local culture either. To make the situation worse, the new owners of STEs were profit-oriented and often committed unethical business practices. All of these changes drove away many independent foreign tourists and hence Yangshuo’s image of ‘Western Cultural Enclave’ is disappearing.
The local communities The early foreign tourists visiting Guilin came with an open mind and a sharing and embracing attitude. They brought commercial awareness to the local people and helped http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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business competition, the local people are losing their beliefs in the naïve and emotional mutual-aid and sharing.
3.2.5 Discussion and Conclusion
The decade from 1999 to 2007 was an important developing period for Guilin’s domestic tourism. It grew to be more stable in attracting diverse domestic tourists from farther origins; it got more mature in reacting to and recovering from unexpected events such as SARS. Behind the phenomenon, we should acknowledge the national backgrounds for the fast and healthy development of Guilin’s domestic tourism, such as the stable political and economic macro-environment, the improved infrastructure and related facilities, and the government’s encouragement of tourism development as a means to stimulate domestic consumer needs.
Generally speaking, domestic tourism demand is impacted by three major factors: discretionary income, leisure time, and the willingness to travel. Among the three, discretionary income is the prerequisite; leisure time is the essential condition, and travel willingness is the catalyst. Discretionary income of Chinese residents is increasing at a large pace. In 2008, the discretionary income of urban residents was CNY 15,781.00 (around US$ 2,500.00), an increase of 157.6% from that of 1949 when the new China was founded. The increased discretionary income lifts residents’ living standard and moves them up the hierarchy of Maslow’s needs and improve their willingness to spend on tourism. According to the general law that "as the GDP per capita exceeds US$ 1,000.00, it will generate domestic tourism motive" (Sun, 1990, p.1), China's domestic tourism industry has entered its fast-developing period.
Seasonality of Guilin’s tourism shows that holiday policy has important effects on residents’ travel arrangement. The reforms in holiday policy give Chinese residents more leisure time for travel and tourism: 1. In 1999, 50 years after the founding of People’s Republic of China, the State Department extended public holidays to 114 days per year. In 2000, the policy of three ‘Golden Weeks’ was established to stimulate tourism development. These three weeks fell in May for the Labour Day, in October for the National Day, and in January of Chinese lunar calendar for the Spring Festival. 2. In 2007, the State Department revised the public holiday policy for the fourth time. Under this new policy, Chinese people have five long-weekend holidays (based on the traditional Chinese festivals such as Mid-Autumn Festival) and two ‘Golden Weeks’ (The
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Chinese people are more willing to travel for leisure. As suggested by Maslow’s Hierarchy of Needs theory, people will move on to satisfy their higher level needs such as ego and self- actualization needs when their lower-level needs such as needs for food and safety are satisfied. Today, the GDP per capita for Chinese residents is more than US$ 3,000, therefore the physiological needs for most Chinese people have been met and they turn to satisfying higher level needs. Sight-seeing trips, visiting friends and relatives, therapy holidays, and study field trips, etc become some of the many means to satisfy people’s social/ego/self-actualization needs. Tourism is becoming an important part of Chinese residents’ life, especially for those living in the well-developed regions such as the Pearl River Delta in the south and the Yangtze River Delta in the east of China.
We can learn from the case of Guilin that with an accumulation of experiences in tourism development during the decades, Chinese destinations are more capable of attracting diverse tourists, more skilful in meeting tourists’ needs, and more resilient in dealing with unexpected and negative events. Although the impacts of the ongoing financial crisis starting from 2008 on the tourism industry are still hard to measure, we have the confidence that we will survive the crisis with the collaborated efforts from the government and the tourism industry. Meanwhile, as domestic tourism develops with a prevailing mass tourism mode, the challenges to destinations’ receiving capabilities and service system, to the natural and social environments, and to the balance between domestic tourism and inbound tourism should not be neglected.
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Bibliography
Bao, Jigang, Haiyan Zheng, and Guangquan Dai (2002), ‘The evolvement of spatial structure and the significance of Guilin’s domestic tourist origins’, in: Acta Geographica Sinica, 57 (1), pp. 96-106. (In Chinese.) Bao, Jigang (1992), ‘An application of gravity model in tourist forecasting’, in: Journal of Sun Yat-sen University (Natural Science Edition), 31(4), pp. 133-136. (In Chinese.) Cai, Liping, Bo Hu, and Ruomei Feng (2001), ‘Domestic tourism demand in China urban centres: Empirical analyses and marketing implications’, in: Journal of Vacation Marketing, 8(1), pp. 64-74. CNKI, Chinese Journal Articles Database, (online), available: http://dlib4.edu.cnki.net/kns50/scdbsearch/cdbindex.aspx (15-04-2012). CNTA, The Yearbook of China Tourism Statistic (1999-2011), National Tourism Administration of the People’s Republic of China, Beijing. Guilin Codification Committee, The Yearbook of Guilin Statistic (1999-2011), Fangzhi Press, Guilin. Guilin Tourism Administration, and the Center of Tourism Planning and Research of Sun Yat-sen University (2002), The Master Plan of Tourism Development for Guilin (2001-2020), China Travel and Tourism Press, Beijing. Guilin Tourism Administration, and the Center of Tourism Planning and Research of Sun Yat-sen University (2010), The Master Plan of Tourism Development for Guilin (2008-2020), Guangxi Normal University Press, Guilin. Li, Fengsong, Yuanrong He, Lixun Huang, and Xiaoping Dou (2009), ‘Investigation of the changes in Guilin domestic tourist markets under the background of financial crisis’, in: China Business, 19, pp. 61-63. (In Chinese.) Liu, Minkun (2010), ‘Rethinking the researches on tourism social impacts in China’, Tourism Tribune, 3 (1), pp. 5- 9. (In Chinese.) Liu, Yanyan (2010), ‘Analyzing the contributions of China’s domestic tourist consumption to the economic growth’, in: Commodities and Quality, October, pp. 19-20. (In Chinese.) Long, Jiangzhi and Hengyun Li (2012), ‘A study on domestic tourism consumption modes of urban residents in China’, in: Geographical Research, 31(1), pp. 155-168. (In Chinese.) Lu, Lin (1989), ‘Exploration of the spatial structure of the domestic tourist market of Huangshan Mountain’, in: Human Geography, 4(2), pp. 70-72. (In Chinese.) Stephen L. J. Smith. (1995), Tourism analysis: A handbook (Second Edition). Longman Scientific & Technical, New York. Sun, Shangqing (1990), Study of Chinese Tourism Economy, People’s Publishing House, Beijing. Wen, Zhang (1997), ‘China’s domestic tourism: Impetus, development and trends’, in: Tourism Management, 18, pp. 565-571. Yin, Robert K. (1983), The case study method: An annotated bibliography (1983-1984 ed.), COSMOS Corporation, Washington DC. Yin, Robert K. (1994), Case study research: Design and methods (2nd Edition), Sage, Thousand Oaks. Zhang, Lingyun (1999), ‘Market evaluation: A new outlook of tourism resources’, in: Tourism Tribune, 14(2), pp. 47-52. (In Chinese.) Zhang Yunlai (2002), Study on the analysis of affecting factors and the application of forecasting techniques about domestic tourist needs (Thesis), Northeastern Forestry University, Harbin (In Chinese.) Zhao, Lei and Hua Quan (2011), ‘An empirical study on relation between domestic tourism consumption and economic growth in China’, in: Economic Problems, 4, pp. 32-38 (In Chinese.) Zhu, Qinfu, Jiali Fu, and Yuntao Long (2011), ‘Analysis of the characteristics of Chinese domestic tourism demand: 1993-2009’, in: Tourism Research, 3(4), pp. 9-13. (In Chinese.) http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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3.3 Travel Experience and Life Satisfaction through Mobility: A Constructivist Perspective on Domestic Tourism in China By Dr Honggen Xiao
3.3.1 Introduction
This article addresses the meanings of domestic tourism for travellers in contemporary China. Drawing from prior projects and online reviews on domestic tourism in China, the study adopts an interpretive/constructivist approach to the construction of meaning attached to domestic tourism by the travel participants. Contextualized within specific settings and articulated from their own perspectives, accounts from backpacker narratives and auto tourists’ lived experiences have lent to discussions on travel experience, experiential learning through travel, auto tourism and mobility, family vacations and togetherness, and life satisfaction or quality of life, which are characteristic of contemporary Chinese society within which domestic tourism is simmered and acts as an agent, along with other forces, for social cultural change currently occurring in China.
3.3.2 The Context of Domestic Tourism in China
Domestic tourism in China, the remarkable instance of Chinese travelling within their own country, has been of phenomenal growth over the last two decades. As Zhang (1997) notes, the inherent causes for, and consequences of such a dramatic growth are linked to the overall social economic development of the country. Indispensably post hoc attempts to document domestic tourism in this vast socialist economy and to construct and interpret its associated meanings and consequences should be fully embedded within its growth context and articulated from historical, economic, socio-cultural, and regional development perspectives.
First the booming and sustainable growth of domestic tourism could be located in the context of China’s historical and economic development. Notably a historical-economic lens serves as a contrast of the overall pattern of tourism development in China to that (or those) in North America and Europe. The former, the instance in China, is largely driven by economic impetus at its very start through a priority placed on international/inbound tourists and foreign receipts, which is followed and accompanied by an ever-expanding “tourism- http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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recreation for the well-being of their peoples, and subsequently embraces “tourists” as their service-oriented economies expand and their journeys towards sustainable and community- based tourism development unfold. In the instance of China, the rapid and sustainable development of its national economy is a direct and most important factor in promoting the growth of domestic tourism. As Zhang (1997) notes, the improved living standard as the result of a healthy and stable national economy has accumulated surplus leading to an overdue passion of the Chinese for travel away from their home to experience cultural counters through learning and to enjoy pleasure and life satisfaction.
Second from a socio-cultural perspective, the strong growth of China’s domestic and (by extension) its outbound tourism, has strongly challenged the conventional wisdom in positioning and interpreting international tourism, which, for almost half a century, has been characterized by dominating patterns of tourist movement from the “North” to the “South”, and consequently the understanding of which has been framed within the cultural representational theories and neo-economic ideologies (e.g. the postcolonial representation of the “other”). Nevertheless the recent emergence of China as a generator of strong domestic and outbound tourism has revolutionized the traditional patterns of tourist mobility and hence challenged the conventional wisdom of interpreting domestic and international tourism, which calls for alternative interpretational frameworks for new power dynamics in the tourism arena.
Third from a regional development standpoint, it is worthwhile to note regional disparities of economic development in China where tourism has effectively served as a strategy in the country’s regional/national development agenda to tackle poverty for harmonious growth. In accordance with such a disparity, the eastern and coastal regions have remained the major generating sources of domestic tourism whereas the western and less developed regions have been destinations or receiving areas of domestic travellers. Likewise lower levels of consumption and economy packages have been characteristic of domestic tourism since the 1990s.
Nevertheless the growth of domestic tourism is an indicator of ever-rising living standards of the Chinese and a marker of quality of life since the 1990s. Notably major household purchases amongst the Chinese have varied by eras, where in the 1970s, bicycles, sewing machines and watches were typical examples, and the 1980s were characteristic of colour TV sets, refrigerators and washing machines, before the shift to travelling for pleasure, houses/apartments, cars/automobiles, and personal computers since the 1990s.
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Engel’s coefficient, the proportion spent on food of the total consumption expenses, serves as an important indicator of resident’s quality of life. Reduced Engel coefficient shows the changes in consumption structure and indicates the improvement in living quality. The consumption structure, one major measurement of living standard and quality, has been changed noticeably for urban residents since 1996 and for rural residents since 1999. The change in the consumption structure is reflected by the changes in the Engel’s coefficient. For urban resident the Engel’s coefficient dropped from 50% to 49% in 1996, below the midpoint of all consumptions. While for rural residents, the year of 1999 indicated the significant drop when the Engel’s coefficient slid down from 53% to 49% (National Bureau of Statistics of China, 2007).
In addition, in 2006 the per-capita disposable income of urban residents averaged CNY 11,759, an increase of 128% over the last ten years, while the per-capita net income of rural residents averaged CNY 3,587, increased by 72% over the last decade. Following the constant increase in the resident’s incomes, people’s consumption level has remarkably improved. In 2006 the average consumption of urban residents reached CNY 8,697, increased by 108% over the previous ten years, while that of rural residents amounted to CNY 2,829, an increase of 75% over the past decade.
Table 3. 11 Per capita annual income, engle coefficient and consumption of urban and rural households, 1990-2006
Year Per capita annual income Engel coefficient Annual per capita expenditure (CNY) (CNY)
Disposal Living Consumption Net income of Rural Urban income of expenditure of expenditure of rural households households urban rural urban households (%) (%) households households households 1990 686.3 1,510.2 58.8 54.2 571 1,686
1991 708.6 1,700.6 57.6 53.8 621 1,925
1992 784.0 2,026.6 57.6 53.0 718 2,356
1993 921.6 2,577.4 58.1 50.3 855 3,027
1994 1,221.0 3,496.2 58.9 50.0 1,138 3,979
1995 1,577.7 4,283.0 58.6 50.1 1,434 4,874
1996 1,926.1 4,838.9 56.3 48.8 1,756 5,620
1997 2,090.1 5,160.3 55.1 46.6 1,617 4,186
1998 2,162.0 5,425.1 53.4 44.7 1,590.3 4,331.6
1999 2,210.3 5,854.0 52.6 42.1 1,577.4 4,615.9
2000 2,253.4 6,280.0 49.1 39.4 1,670.1 4,998
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2002 2,475.6 7,702.8 46.2 37.7 1,834.3 6,029.9
2003 2,622.2 8,472.2 45.6 37.1 1,943 6,511
2004 2,936.4 9,421.6 47.2 37.7 2,185 7,182
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Year Per capita annual income Engel coefficient Annual per capita expenditure (CNY) (CNY)
Disposal Living Consumption Net income of Rural Urban income of expenditure of expenditure of rural households households urban rural urban households (%) (%) households households households 2005 3,254.9 10,493.0 45.5 36.7 2,555 7,942.9
2006 3,587.0 11,759.5 43.0 35.8 2,829 8,696.6 Source: National Bureau of Statistics of China
With the rapid growth in the past three decades, domestic tourism development, as well as economic growth across different regions in China, have faced substantial disparity and inequality (Pedroni and Yao, 2006; Wen and Tisdell, 2001). Studies have indicated that Chinese economic power is heavily concentrated in the coastal region, and tourism (including domestic and international sectors) appeared to play a leading role in regional development and reinforce regional disparity (Gao and Ge, 2000; Wen and Tisdell, 2001, 1997; Wen and Sinha, 2009). With increasing significance of domestic tourism in China, its impacts on travel participants’ lived experiences, life satisfaction and wellbeing require more research attention.
Historically the Chinese have an age-old tradition of travelling, which is inseparable from its culture. As indicated in the old saying of “he who travels farther knows more”, the Chinese travel culture emphasizes enlarging one's knowledge; raising one's understanding of world outlooks, cultures and sub-cultures; enhancing self-cultivation through an inner journey into the existential self; and making friends through cultural encounters. In terms of domestic tourism, while much has been said of its economic magnitude as an enormous market and profitable businesses, little if any has been reported into the subjective and sense-making aspects of domestic travel as cultural encounter or experiential learning, life-enriching experience, wellbeing and quality of life in the documentation of this growth sector in China’s tourism industries.
The purpose of this chapter is therefore to take a qualitative and constructivist approach to the interpretation of meanings of contemporary Chinese engaging in domestic travel, and to reflect upon the implications of the growth in domestic tourism for academics and for policy and development practices. Analytically accounts and narratives from typical instances of backpackers (or “donkey friends” in the Chinese context) and auto tourists are utilized and presented to lend to discussions on the meanings of mobility, travel experience and life satisfaction or quality of life for domestic travellers.
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3.3.3 Travel Experience and Life Satisfaction through Mobility
The present study adopts qualitative methodology; on the basis of observations from prior research projects and online travel reviews, the analysis presents the instances of backpacking and auto tourism, which lend to discussions on mobility, travel experience and life satisfaction of the Chinese through their engaging in domestic tourism.
Backpacker Narratives
Over the years, backpacking (or donkey friend travel) has been increasingly popular amongst the more adventurous, novelty-seeking, and exploratory travellers in China. Derived from a collaborative project on backpacking with a tourism academic in Shandong Province, these narratives are about female Chinese travellers engaging in backpacking to different parts of the country; their views on travelling/backpacking as a way of life benefiting from experiential learning; their interactions or social networks established on the way with locals, hosts and other backpackers; and ultimately (or consequently) their quintessential and existential perception of backpacking as a journey into their inner self, largely through the changes of worldviews they have come to experience or have felt occurring amongst themselves.
Epistemologically from a narrative research perspective, backpackers are a unique type of adventurers or explorers whose accounts constitute powerful, exciting and at times dramatic stories to tell of the meanings of adventures, cultural encounters, as well as identity and self change. Likewise the highly unstructured, flexible and occasionally “seemingly unplanned” features of backpacking trips help result in a social context which is highly conducive to narrative inquiries. As Noy (2004) reports on the instances of Israeli backpackers, the frequent social interactions and enhanced interpersonal communication activities have facilitated the telling of and listening to stories, including occasionally the telling of tall tales of backpacker experiences.
The following narratives are based on conversations and in-depth interviews from an (auto)ethnographically completed project on female Chinese backpackers. The interviewees, aged 22 to 35, are women from middle class. They have all travelled largely domestically for a period of at least one month. They were encountered and interviewed on the way by the investigator of the project who was herself a backpacker during the summer and winter http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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The conversations and interviews with other backpackers were highly unstructured as the talking mostly occurred on the way or during breaks at the hostels. As such, free chats through open-ended conversations were found to be a very useful way to communicate, interact and understand each other amongst backpackers en route. Recording device was hardly used as it appeared “mechanical and somewhat unacceptable” to this group of domestic travellers. Nonetheless note pads or booklets were useful tools to help jot down idiosyncratic thoughts or powerful reflections during or after the talk. In fact, keeping memos or note-taking is not unique to the project researchers; it is indeed commonplace of other backpackers as well, most of whom are thoughtful travellers, and many of whom have a philosophical/humanistic mind.
Nonetheless useful parts of the interviews and conversations were recorded through memos and note pads for transcription and diary/story writing during the evenings to kill the night- time. Predominantly the writings focus on backpackers and self-identity, self reflections and authenticity, experiential/in-depth learning through travel, and social networks on the way through making friends with other backpackers or locals. To enhance trustworthiness of the study and assure narrative power of the stories, these end-of-the-day writings were shared amongst members in the research team. Notably while the writings are in Chinese, the researchers’ bilingual preparation and familiarity with the topic and contexts facilitate the following narrative development in English, and the construction of meanings of donkey friends travelling in China.
Backpacker Identity
Jenny, from Nanjing, was a fourth-year student at a university in Shanghai during the implementation of our backpacking research. At the completion of this project in the summer of 2011, Jenny has had three backpacking trips: the first one was to Tibet, Sichuan, and Qinghai Provinces in August 2009, lasting about twenty-five days; the second trip to Yangshuo, Guilin lasting fifteen days in January 2010; and her third backpacking trip, in twenty-one days, was to Mo-He, the arctic region in Northeast China in August 2010. Most of her adventurous journeys coincided with school’s summer and winter vacations. Typically a budget traveller, Jenny travelled by trains, long distance buses, and local public transits, plus biking, hiking and hitchhiking at destinations. She shared with the researchers that as experiences mounted, her backpacking trips were increasingly less planned, which sometimes resulted in “staying overnight at local railway stations or on trains” due to the availability of train tickets to a next destination. Likewise information search prior to travel was also reduced to the minimum. She recalled heavy web-based search of intended http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Quintessentially and existentially Jenny has experienced a journey of identity change from “I am thought of as a backpacker” to “I think I AM a backpacker”.
“Honestly the identity of being a backpacker keeps troubling me. The first time I was on the way with a backpack as tall as myself, I felt I was greeted by passers-by and other donkey friends as ‘a backpacker’! For visitors, locals and strangers I met en route, the backpacker name was given on the grounds of how I looked and/or how I travelled; for acquaintances and friends, enquiries usually began with ‘how you got to the place you have visited’. By the time they learned I hardly planned for a trip to travel by myself, they usually amazed at me as ‘a backpacker.’ It is for this very reason that I felt I was attracted by other backpackers on my way, a sense of mutual attraction to each other. Also because of this shared identity, we backpackers reflected upon the inflexibility and superficiality of sightseeing tours and problems associated with shopping or inadequate host-guest interactions associated with package tours. In fact, it is through such a process of ‘labelling’ or ‘being labelled’ that I now naturally see myself as a backpacker.”
In addition to identity change, there are also implications of self change in backpacker narratives. Notably domestic pleasure trips (where and when people travel in comfort for pleasure) are within easy reach for many Chinese today, but for those who have the courage to engage themselves in backpacking, the hardship of travel typically serves as an illuminating journey of life transition or self change, particularly for youths at transitional periods such as finishing off university, or prior to the commencement of a job or career, who are variously referred to as drifters or gap year tourists in the scholarly literature (Lyons, Hanley, Wearing and Neil, 2012; O’Reilly, 2006). Such exciting trips are often constructed or perceived by others as strenuous, risky, adventurous, and are often associated, in positive terms, with experiential learning or authentic travel experience.
Construction of Authenticity on the Way
Bonnie was at gap years; she was wrestling with plans for securing a satisfactory job after master’s studies or for pursuing doctoral studies in tourism, hospitality or other fields either in China or abroad. As a result of the transition, she was able to engage in some domestic backpacking trips in the last few years. She participated in our study during one of her recent trips. Although she was a tourism graduate, http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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“My first backpacking trip was in 2005 when I was still doing my master’s studies in Beijing. That summer, I travelled with a classmate to Guiyang; the journey by train took us almost 30 hours to get to our destination—the capital city of Guizhou Province, where we checked in to a hostel we had previously booked online before our departure. We shared the room with two other young female travellers from Beijing. Later on, we learned that our ‘new roommates’ have already been on their way for almost three weeks, travelling all the way from Guangxi, Yunnan and Sichuan Provinces. I was really amazed to see how young girls could carry huge bags and often sleep at night in their sleeping bags. It was hard to believe, but I did believe it now, that girls could also travel like boys. This backpacking trip, lasting for two weeks, has left me with many interesting recollections, memorable travel experiences, sincere interactions with locals and other visitors, as well as friendships made on the way; more importantly I have had quite many provocative diaries and pictures for posting in my blogs as a result of the trip. Upon the completion of this backpacking trip, I just couldn’t wait to change my blog name tag to ‘measuring distance with my own foot steps’. In fact, this very first backpacking has triggered me to go for more in the next few years, including my first ever attempts to climb snow- capped mountains, to view vast lakes on plateaus, to watch snow storms in summer, to feel the timelessness of Kunlun Mountain, and to stay with Tibetan families. While some of these trips were taken with other donkey friends, some were simply by myself, and I came to note that only such trips could give you an authentic feeling of ‘being a traveller on the way’ ”.
As researchers on this topic, we were not as shocked to read many articles on backpacking from academic publications (e.g. Tourism Tribune) or from newspapers (e.g. China Tourism News), as we were to hear from these Chinese youths, who have been actually practicing backpacking, that many places in west and southwest China have already been heavily traded by domestic backpackers, and that backpacking has been substantially institutionalized in many destinations, including the zoning of areas for hard-core versus mild backpackers, the supply of food and other necessities on the way, the emergence of places for gatherings and stopovers (e.g. tea houses, internet cafes), and even the divisions of old towns into different levels of commercialization such as tourist districts or zones for backpackers as in the instances of Lijiang, Yanshuo, and even the newly emerged Shangri- la.
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matters such as marketing, accommodation, perception, motivation, guidebooks, terrorism, impacts, and development. By the same token, as was attested by the above narratives, the level of learning and inner changes that Chinese young backpackers have experienced through their domestic travel have both reflected the external changes they are facing, as much as they – as adventurous domestic travellers – are constructed by these changes.
Mobility and Auto Tourist Experience
Since the turn of the century, the automobile industry has been growing very rapidly in China as an engine to drive the growth of its associated economic sectors throughout the country. For the triggering of domestic tourism, as a result of the ever-increasing number of Chinese families and/or individuals owning vehicles, improved infrastructure for road transportation, and the availability of leisure time and prolonged public holidays for family vacations, auto tourism – the mode of domestic tourists travelling for pleasure in their own cars – has experienced a corresponding growth over the last decade. In response to this growth, there has also been, to date, numerous research published in Chinese to document the circumstances of and/or barriers to its growth, to address the problems or issues associated with auto tourism, and to report on its development status as well as the profiles and characteristics of Chinese auto tourists as an emerging domestic travel market (Bai, 2007; Cheng, Zhang, Zhou and Wang, 2006; Li and Su, 2008; Luo, 2008; Sun, 2007; Xiao, 2008; Zeng and Zheng, 2008).
Succinctly put, these studies have pointed to issues and problems of China’s auto tourism in pertinence to the following aspects. First and foremost are safety and security issues associated with auto tourism. Such issues can be seen from two perspectives. On the one hand, there are instability and social unrests in destination communities, which leads to auto tourists’ vehicles being stolen and/or campers being robbed. On the other hand, inadequate awareness of safety on the part of auto travellers has given rise to security concerns. Second inadequate support systems on the way (e.g. outdated road maps; insufficient information about gasoline stations, motels, auto repairs and maintenance; the lack of provision of first aids; the lag-behind of auto insurance, etc) have hindered a further growth of auto tourism in China. Third there are yet to be more involvements by the travel industry (e.g. intermediaries) in developing and promoting auto tourism products. At the moment, there are only some involvements from major tour operators such as China International Travel Service, China Youth Travel Service, China Comfort Travel, and BTG International Travel and Tours. In addition, car rental businesses are yet to grow further and be integrated into the mainstream of auto tourism in China. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Of the research reviewed on auto tourism in China, Xiao’s (2008) study, based on a market survey, reported on the profiles and characteristics of auto tourists travelling to Panlong Gorge Scenic Area in Deqing County of Zhaoqing Municipality of Guangdong Province,
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which is of interest to this emerging domestic tourist market. The Panlong Gorge Scenic Area in Zhaoqing is a regionally popular ecotourism destination featuring waterfalls, white water rafting, and nature-based activities for recreationists and family vacationers. From 2003 to 2005, annual arrivals of domestic tourists were around 280,000 people, most of whom came by private vehicles. Gradually through word-of-mouth, Panlong Gorge Area has evolved into a regionally renowned auto tourism destination. The survey, targeted at visitors arriving in private cars, vans or recreation vehicles (versus tour buses or company-owned vehicles), was conducted during the five-day golden holiday week in May 2006. About 278 questionnaires were returned through a researcher self-administered survey, with a valid response rate of 75%. Table 3.12 shows the demographic characteristics of the 2006 sample of auto tourists visiting Panlong Gorge Area.
Table 3.12 Social-demographics of auto tourists visiting Panlong Gorge area, 2006 (%) Variable % Variable % Gender Occupation Male 64 Management employees in 42 Female 36 companies, enterprises and Age service sectors < 18 3 Government officials 14 18–24 19 Teachers 15 25–34 56 Retired 2 35–44 8 Students(university, high school) 7 45–55 6 Owner/self-employed 20 > 56 8 Monthly income (CNY) Education 800–2,000 25 Bachelor degree and above 35 2,001–3,000 46 Associate degree 29 3,001–4,000 23 Senior high school 24 > 4,000 6 Junior high and below 12 (N=278, the 2006 survey) Source: Xiao (2008, p.121)
In terms of origins of these auto tourists, Xiao’s (2008) research found that the Pearl River Delta Region is the primary source generating about 72% of the respondents, with a breakdown of Foshan 25%, Guangzhou 23%, Shenzhen 21%, local auto tourists from Zhaoqing (14%), and other regions of Guangdong (10%), whereas the neighbouring Guangxi Autonomous Region, particularly Wuzhou, generated about 7% of auto tourism to Zhaoqing. A pattern of distance decay was noticeable in terms of spatial features of these auto tourists. The study also reported that the information these travellers searched and used for their auto tour destination choice was accordingly from travel agencies (32%), friends and relatives or word-of-mouths (31%), destination advertising and promotion (20%), http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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outdoor/physical activities, staying together with family for vacations, and enjoying quality of life with family members and relatives.
In addition, a number of problems were identified through probes soliciting visitors’ level of satisfaction with the overall environment of the destination to further develop auto tourism, as well as their views on current drawbacks or gaps that should be filled or attended to in order to further enhance future visitor satisfaction. Over 55% of the auto tourists visiting this destination/attraction reported they were “very satisfied” or “satisfied” with what they have received. Of those who reported dissatisfaction or a lower level of satisfaction in response to the “current drawback” question, their major concerns were largely concentrated on 1. too many toll fees or toll stations along the way while driving to their destination; 2. inadequate road signage and poor indications of driving distance; 3. high parking fees and insufficient parking space; 4. dangerous mountain roads making safe driving a concern; 5. poor access to much needed information about attractions/destinations; 6. less than enough properly furnished restaurants to cater to middle-class auto tourists, and “Non-Jia-Le” (local, often family-operated restaurants) appearing unclean; 7. inadequate facilities for shopping and entertainments; and 8. not enough interactions with local people.
Nevertheless despite this survey and many descriptive accounts on its recent rapid development, few studies have attempted to report on auto tourist experience, particularly in pertinence to mobility and quality of life facilitated by the ownership of vehicles in association with holidays and pleasure travel, and family vacations and togetherness. The following narrative about a two-day self-drive family vacation to (in) Panlong Gorge is based on Carolyn’s travel experience or diaries, posted on 14 May 2009 and retrieved almost verbatim from a travel commentary website called www.lvping.com.
“In the golden week of May 2009, we, three of us, chose to spend a two-day family vacation in Panlong Gorge Area. We booked accommodation prior to our departure as it was a long holiday week. Room rates were typically twice as high as those on regular days, but it was for my birthday, we were ‘prepared’ to spend a little more.
Despite our advance booking of wood lodges located in the scenic area, there were not many vacancies to choose from for the first two days of May. But we were happy to be offered an independent cottage-like lodge at the top of the hill of the gorge scenic area. We were told that the lodge was very unique and that it http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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We planned our trip carefully. On the first day, we departed from Jiangmen City, drove along Heshan, Gaoyao, and Zhaoqing, and arrived at Deqing County after a three-hour drive. Travelling in our own vehicle, we enjoyed full flexibility on the way. At Deqing County, my husband insisted that we pay a visit to Lung Mo Temple (Dragon Mother’s Temple), which is widely believed to be a supernaturally efficacious temple. The admission was CNY 50 per person, which was quite expensive. The locals told us that the site was contracted out to Nanhu International Travel Service. The temple is small but full of visitors. I thought most visitors, as we did, came because of its fame. As soon as we pulled in at the parking lot of the temple, we were surrounded by a group of local ‘aunties’, one of whom talked us into buying some ‘offerings’ such as incenses and candles, and led us to the temple for worshipping. Afterwards we were pleased to tip her for helping.
After visiting the temple, we had lunch in Deqing. I noted from the license plates that there were many non-local vehicles outside the restaurant, and thought this must be a nice dining place for auto tourists like us. The restaurant was clean with a strong local flavour, and its menu items were reasonably priced. I was particularly happy to see my son eat a lot for lunch. After lunch, I took my turn to drive as my husband said he needed a rest, but he cautioned me to watch for road signs to Panlong Gorge. As it is a regionally renowned attraction, I had no problem following the directions.
It took us approximately an hour to drive from Lung Mo Temple to Panlong Gorge. As a reminder to dear auto tourist friends, if you drive your own car to the gorge area with booked accommodation, let the guard at the entrance know you have booked to stay overnight. Or you will be directed to park in a place far away from where you will stay. This happened to us on that day when we arrived. As the Gorge Area has now become a very popular destination for auto tourists, there are too many cars on holidays or weekends. Fortunately we met a site management person who saw us pulling almost bulky luggage out of our vehicle; we were then told that we could pull our car to the reserved parking spots nearest to our lodge. Otherwise, we would have to walk almost 20 minutes back and forth from our car to the lodge.
We were finally led to the lodge by a management staff, who opened the door for us. The room was clean and comfortable for a family, and I was really amazed to see all the interior furnishings and decorations were wooden. There http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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were just within arm’s reach from the balcony. This, I felt, was the nicest of all for urban family vacationers like us.
After settling down our luggage in the room, we went to the hot spring which is also connected with the ‘water world’. There we found the ‘little fish pond’ of great fun as we sat in the water with little fish ‘kissing’ your toes. We spent about two hours there before having dinner at the ‘sunset’ restaurant. The rest of the evening featured ‘a water curtain performance’ starting at 8 o’clock, and ethnic cultural performances which began at 9 o’clock. After all these entertainments and recreational activities, we felt tired and comfortably retreated into our little lodge before we were “alarmed” awake by the singing birds outside the window the next morning.
After a sound sleep, I found the lavender garden particularly refreshing with its dew and fragrance. I regretted we had not been able to book one of the lodges near the lavender garden. Perhaps that alone will deserve another future revisit for three days, but I was aware then and there that we had to return home after lunch…”
Notably while travel diaries like this are interesting and are often seen in travel review and commentary websites, they are nevertheless very authentic reflections of contemporary middle-class family vacations in China. Carolyn’s narrative is typical of self-drive vacations centering around family gathering or togetherness, quality of life, and mobility facilitated by the ownership of private vehicles.
3.3.4 Conclusion
What can be said of the booming of domestic tourism in China? The above anecdotal accounts are no more than the tip of an ice-berg, reflecting the researcher’s perspectives and interpretations. Like other developing economies, although international/inbound tourism to China has been central to the country’s tourism administration and policy as well as research and practice, particularly at the earlier stages of its development, it is now justifiable to say that the bulk of China’s tourism is domestic tourism. Arguably the booming of China’s domestic tourism since 1990s should be better understood from a historical, socioeconomic and comparative perspective. As noted earlier, China’s tourism development began with a political economic orientation with focuses on international http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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well-being for its people and society. It is in the latter context that domestic tourism grows and booms in China. Interestingly this has followed an exactly reverse pattern of growth when compared with the patterns or instances of the welfare states such as the United States o America and Canada. Seen in this light, it will be imperative to examine China’s domestic tourism today in relation to leisure and recreation, sports and cultural industries, quality of life and well-being, as well as health/wellness industries. Indeed in the 12th Five Year Plan for National Economy and Social Development (National Development and Reform Commission, 2011), there is a strategic re-orientation for China “to comprehensively develop domestic tourism, actively develop inbound tourism, and encourage an orderly development of outbound tourism” (p. 39). Such a reorientation in China’s tourism development strategy towards the building of modern service industries to satisfy its people is consistent with the position of “domestic tourism as a quest for experience and quality of life through stimulating domestic consumption” (p. 39).
In this context, the goal and undertaking of tourism administrations at different levels of government are to satisfy people’s needs for travel and to enhance their benefits and well- being from engaging in domestic tourism (Dai, 2010; Dai, Zhou and Xia, 2012). Nevertheless difficulties and challenges in developing domestic tourism in China could not be ignored due to circumstances such as regional discrepancies or imbalance in the maturity of markets and the readiness of the industry, the benefits of tourism for host communities, the control of excessive investment in tourism, and the dilemma between exploitation and protection of resources and heritage for domestic tourism.
Notably no studies of China’s domestic tourism could be complete without a full consideration of travellers’ perspectives and/or experiences (Xiao, 2011). From an interpretive/constructivist perspective on domestic tourism as travel experience and life satisfaction through mobility, a number of implications for research and practice can be spelled out.
First from the perspective of research and scholarship, despite a rapid increase in recent years in both quality and quantity, research on domestic tourism in China is yet to improve in paradigmatic and methodological terms (Aramberri and Xie, 2003; Bao, 2011, 2005; Xiao and Smith, 2006; Xie, 2003; Zhu and Liu, 2004; Zhu and Lu, 2005). According to these reviews, tourism in China is typically perceived as entrepreneurial and industrial (or sectoral) activities; consequently much of its research is characterized by planning/development and business/management related studies. In terms of research subjects, state-of-the-art reviews indicate that China’s tourism research and scholarship are often driven by priority issues in the government’s development agenda (Xie, 2003), with concentrations of http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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different types of pleasure travellers or vacationers, the use of travel as an approach to experiential learning or a seeking for authenticity, the educational role of domestic tourism for Chinese youths (e.g. red tourism for school students), and gender or feminist perspectives on tourist experience, are amongst the under-researched subject areas in pertinence to domestic tourism in China.
Methodologically Zhang and Lu’s (2004, p. 77) content analysis of 465 articles published in Tourism Tribune (1999-2003) indicates that much of tourism research published in Chinese is characterized by simple descriptive accounts based on discussions or reviews of second- hand texts, government documents, and official statistical reports. The lack of rigour has resulted in a poor state of trustworthiness of research conclusions and limited utility of recommendations. In view of its current state of knowledge, tourism academics in China have started to note the importance of paradigms and methodologies for research innovation and progress (Bao, 2011, 2005; Lin, 2005; Liu, 2001). In this regard, as a complement to statistical approaches, segmentation and market analysis, econometric modelling/forecasting, and area-based planning or case studies, constructivist/interpretive approaches to domestic tourism as human experience for participants of various ages, social groups, and different walks of life could contribute to a better understanding of the booming and sustained growth of domestic tourism in China after the 1990s.
Second domestic tourism is now playing an important role in China’s national development strategies and policy formulation. According to the State Council’s Number 41 official document titled “Opinions about accelerating the development of tourism industries”, tourism is positioned as a strategic pillar industry within China’s national economic and social development agenda, and is to be developed as “modern service industries to better satisfy the needs of its people” (The Central People’s Government of the People’s Republic of China, 2009). In response to such policy reorientations, the strategic focus of China tourism has shifted from international to domestic tourism for the well-being and quality of life of its people.
Viewed historically, such a policy reorientation for tourism development in the new millennium is of historic significance in completing a circle of growth for a developing economy like China. Unlike the development practices in a welfare state (e.g. in the United States of America and Canada where development began with recreation and leisure and was supported by the national/provincial/municipal park systems for the well-being of its people, and where tourism was only a newcomer to the recreation and leisure business and hence in their education, research and policy practices), tourism development in China has exactly walked through the opposite path of growth. It began with international/inbound http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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onto) domestic tourism, leisure and recreation for the sake of people’s quality of life. Such a pattern of growth is clearly reflected in the history and practices of education, research, policy, and businesses of tourism, recreation and leisure in China.
In fact, the recent boom of domestic, outbound and national tourism has marked the emergence of a leisure economy in China, which has attracted substantial interest from the Chinese and international/overseas academics. As Xiao (2001, p. 24) outlines in an earlier research, the significance of the Chinese society embracing a leisure economy should be (or could be) examined through a social constructionist interpretation of a quest for well-being, healthy lifestyles, and quality of life. Arguably these studies will bring Chinese tourism researchers in closer affinity to the Western concept of recreation and leisure studies.
Third in an increasingly community-based orientation of development, tourism will continue to serve as an alternative livelihood to poverty alleviation in Chinese rural and under- developed communities. Departing from conventional approaches to examining the impacts of tourism on a destination society/community, future researchers could alternatively immerse themselves with the community under study in order to elucidate the relationship between tourism and poverty alleviation through triangulation from multiple perspectives. The impacts of community tourism development could be better understood by giving voices to the various stakeholders, rather than typically assuming the top-down approach to promoting and developing tourism to fight poverty or generate employments.
In an increasingly liberal society such as China, development is not only an issue of the government but also, and perhaps more importantly, a shared concern of the members, stakeholders, and communities involved in the change process. Community-based ideologies, currently more popular in the developmental praxis in democratic regimes, are also likely to exert an impact upon, or even change, the theory and practice of developments in China, including the praxis of community-based tourism at different levels. Presumably there is a need to recognize the breadth of potential stakeholders that can be affected by tourism development. Stakeholders are not limited to just government and investors, but include local residents as well. As such, knowledge development is inseparable from the collaboration process and relationships, which is essential to achieving a balance of conflicting expectations of the various parties in a tourism development initiative. Paradigmatically such a position is particularly inviting of competing perspectives such as critical theory or constructivism (Guba, 1990; Guba and Lincoln, 1994). Moreover such a shift in thinking and knowing will have implications for China tourism researchers serving as consultants, regional planners, product developers, and programme designers at policy, planning and development, and organizational settings. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Fourth tourism has a role to play in the patriotic education of Chinese youth and in the construction of a harmonious society in China. The political exploitation of tourism in China (for example, through the development of “red tourism” or social tourism) is a subject that
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deserves further research. While tourism academics in the Anglophone communities are familiar with terms such as dark tourism or thanatourism, “red tourism” – visitation to war/revolution heritage sites for the sake of communist and patriotic education in modern China – calls for more conceptualizing in China tourism research. While supply-side arguments on developing tourism products and services for this special segment are available in the Chinese literature (Yu and Lu, 2005), much of the theorizing should be grounded in the perceived impacts of red tourism on the tour participants. Such a perspective, though, has yet to catch the attention of Chinese tourism researchers. In analogy to the works by Anglophone scholars, this line of investigation is related to studies on the impacts of tourism on tourists, the change of attitudes through tourism to politically different destinations or societies, and the social benefits of tourism and recreation for at- risk youth. Methodologically the meaning attached to the political exploitation of tourism or its educational and remedial role needs to be socially constructed, and, depending on personal values or political outlooks, there are likely multiple realities in these constructions and interpretations.
Fifth interdepartmental collaborations in the public domain invite further inputs or contributions from the public administration discipline, which is currently under-researched in China tourism (Su and Xiao, 2009). The various forms of governance in contemporary China tourism practices call for perspectives such as outsourcing, privatisation, and contracting-out public (tourism) services. As Zheng (2005) notes, since the late 1990s, there has been an increasing tendency in China for local governments to contract out scenic areas and other attractions to private businesses or management companies. By the end of 2004, over 300 scenic areas and attractions have been leased out to private companies in as many as 20 provinces (Zheng, 2005). Accordingly the consequences of outsourcing or leasing tourist attractions to private companies have become a hot issue for tourism researchers. While quantifiable arguments or reports could often be manipulated for political purposes to justify an outsourcing decision, the full consequences – costs and benefits as well as opportunities and problems – are more likely to be fully understood through in-depth ethnographies and longitudinal observations of the involved parties. Theoretical research on privatisation is conventionally situated within public administration as an issue in the cost- effective deliverance and management of public goods. Notably the perspectives of privatisation, outsourcing and contracting-out public domains in China tourism could contribute to a better understanding of the subject and of its associated impacts on the institutions, businesses, and individuals directly affected by these innovative modes of governance.
Sixth current policy, development and industry practices in China call for the need to http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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health industries. In addition, the boundaries of tourism with properties and real estates, as well as leisure and cultural industries are of paramount importance in the new era. In such changing contexts of new development, the enhancement of tourism industries will be of great interest to academics and practitioners alike.
The changing scenarios of domestic tourism in China will pose challenges for its researchers, policymakers and practitioners to be continually innovative in perspectives. From an evolution standpoint, the history and philosophy of social sciences seem to warrant an intriguing question in connection to praxis, theory development, and the dissemination of knowledge in a new power structure: What is the future of China tourism and of its research? At the critical turn of tourism studies towards an academy of hope with due respect to Eastern philosophies, indigenous learning, and indigenous peoples (Pritchard, Morgan and Ateljevic, 2011, p. 954), and in light of the intellectual challenge of translating traditional Chinese philosophies from epistemic notions into implementational and methodological terms, this will remain an interesting and open-ended question to ask as well as to answer.
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Zhang, H., and Lu, L. (2004), ‘An initial analysis of tourism research methods in China’, in: Tourism Tribune, 19(3), pp. 77-81. (in Chinese.) Zhang, J. (2002), ‘Analyzing and pondering over the domestic literature of tourism’, in: Journal of Huaqiao University (Philosophy and Social Science Edition), No.1, pp. 8-9. (in Chinese.) Zhang, W. (1997), ‘China’s domestic tourism: Impetus, development and trends’, in: Tourism Management, 18, pp. 565-571. Zheng, X. (2005), ‘An urgent need for the rationalizing of a system for contracting out scenic areas or spots in tourism’, in: Tourism Tribune, 20(3), pp. 11-12. (in Chinese.) Zhu, H., and Liu, Y. (2004), ‘Viewing the difference and trend of Chinese and foreign tourism research by comparing the articles published in Tourism Tribune and Annals of Tourism Research’, in: Tourism Tribune, 19(4), pp. 92-95. (in Chinese.) Zhu, T., and Lu, L. (2005), ‘Progress of research on cultural tourism in the past decades: A research review of Tourism Management, Annals of Tourism Research, and Tourism Tribune’, in: Tourism Tribune, 20(6), pp. 82-88. (in Chinese.) http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Chapter 4 ______
India
4.1 Domestic Tourism in India: The Industry, Ground Reality and Policy Framework By Dr Kiran A. Shinde
4.1.1 Introduction
Domestic tourists travelling within their country form the bulk of world tourist traffic. Estimates prepared by the UNWTO indicate that global domestic tourism flows are at least ten times greater than international tourism flows: in 2000, there were at least 6,980 million domestic arrivals. During the same year India’s share of global international tourism at 2.64 million foreign arrivals was relatively small in volume (about 0.38%) as compared to its share of global domestic tourism (around 4.6%) of the estimated global domestic tourism (DoT, 2002). A decade later, this reality remains unchanged in India as the numbers of foreign tourists continues to be less than 2.37% of the total flow (18 million foreign tourists as compared to 740 million domestic tourists in 2010) (DoT, 2010). Given such magnitude of domestic tourism, a question arises: How does the existing policy framework contribute to development and management of domestic tourism in India?
In exploring possible answers to questions related to domestic tourism, this paper focuses on two aspects: the structure of domestic tourism and how it features within the existing policy framework. While doing so, it attempts to highlights area where the policy has been effective, as well as identify the shortcomings that contribute to uneven growth and the less than desired levels of achievements in the promotion of domestic tourism.
The paper is organised in five sections. The next section provides an overview of the nature and structure of domestic tourism and highlights its key features. In the third section, a comprehensive review of tourism policies and the government apparatus that exist at the http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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and concluding section comments on the need for better integration of tourism policy and domestic tourism industry.
4.1.2 Domestic Tourism Industry
Several studies have pointed to the paucity of data and lack of accurate reporting and analysis in the domestic tourism sector (Aramberri, 2004; Singh, 2002). However, as I will demonstrate in this section that some data, however debatable it may be, is now available and provides a valuable starting point for a meaningful discussion on domestic tourism. At the outset, it is necessary to point out that estimates and figures used in this paper provide a relatively sketchy picture since these are of little absolute and quantitative significance but “better viewed as indicative” (NCAER, 2003, p. 23). 18 In this section, I identify some recurrent features of domestic tourism using data obtained from national, state and local area studies.
1) National Level Aggregation
It is beyond doubt that the size of the domestic market has been consistently growing: from 63 million in 1990 to 210 million in 2000 and then to an estimated 740 million in 2010 (ten times increase in volume in two decades) (DoT, 2010). However, this growth has been sporadic and unevenly distributed across the country with only ten states contributing to over 85% of tourist flows while the eastern states do not showing any sizable tourism activity. It is also challenging to arrive at any significant conclusion regarding the origin of domestic tourists and their distribution across states. This is due to the fact that studies which provide such data use different methodologies, different sampling techniques and interview different target audience and therefore present findings that are not consistent. I will illustrate this with a comparison of two studies as presented in table 4.1.
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Table 4.1 A comparison of data collected in two different studies on ranking and contribution of different states towards domestic tourism flows State Share (%)1 Rank Share (%)2 Rank Uttar Pradesh 19.57 2 24.4 1 Andhra Pradesh 21.05 1 24.0 2 Tamil Nadu 15.08 3 11.1 3 Karnataka 5.16 5 7.8 4 Rajasthan 3.45 8 4.8 5 Maharashtra 6.55 4 3.7 6 Uttaranchal 4.08 7 3.6 7 West Bengal 2.85 9 3.5 8 Bihar NA 2.2 9 Gujarat 2.55 10 2.1 10 Madhya Pradesh 5.15 6 NA Others 14.5 12.9 Total 100 100 1) Data collected in 2002 as a part of the National Domestic Tourism Survey. 2002 data: This study by the name of Domestic Tourism Survey, 2002-2003 was conducted by National Council of Applied Economic Research (NCAER) for the Ministry of Tourism and Culture, Government of India. About 800,000 households from 30 cities were surveyed in order to assess the patterns of domestic tourism. The questions included aspects related to the destinations visited, the purpose of travel, the frequency of travel, the mode of transport, the choice of accommodation, patterns of tourist expenditures, etc (NCAER, 2003). 2) Data collected in 2005 for the MARCH Study on Evaluation of the scheme “Domestic Promotion and Publicity including Hospitality”. 2005 data: This data is available from the Study on Evaluation of the scheme “Domestic Promotion and Publicity including Hospitality (DPPH)” prepared by MARCH Marketing Consultancy and Research (2006) for Ministry of Tourism, Govt. of India, New Delhi (referred to as MARCH study hereafter). For this evaluation, extensive field work was conducted in December 2006 in eight major cities viz.: Delhi, Bombay, Chennai, Kolkata, Bhubaneswar, Lucknow, Ahmedabad and Hyderabad. Over 1,780 respondents were interviewed from amongst three target segments, viz. General Public (Past tourist or Future Tourist); Current Tourists; Service Providers (End beneficiaries of the campaign). The study examines the effectiveness of the promotional tools and assesses the impact of the campaigns and provides good quality of information about tourist behaviours and preferences.
From the above table it is clear that the overall distribution of domestic tourists from different states on both the percentage share and ranking is inconsistent and dramatically different for a gap of three years and therefore may be misleading. However, irrespective of the distribution it does point to the important contribution of only ten states to the bulk of tourist flows.
The 2006 MARCH study shows that over 30% of the trips are visits to friends and relatives, with only 13% of the trips being in the nature of holidays (MARCH, 2006, p. 21). The 2002 survey conducted by NCAER also puts social visits at about 60% and leisure and holiday travel at 6.0%. While travel for religious and pilgrimage purposes is at 13.8% and business and trade contributes only 7.7% to the domestic tourist flows. It must be noted that social visits by their nature may involve attending religious functions and travel to pilgrimage sites. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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the fact that almost 50% were same-day trips while package tours accounted for less than 2% of the total trips.
A closer examination of data in the NCAER study reveals that the states that receive maximum domestic tourists are the ones that have religious sites/ pilgrimage sites as their major tourism destinations: Uttar Pradesh has six pilgrimage sites considered important by Hindus. The ranking of major places visited by domestic tourists suggests: – Out of 47 most frequented sites 19 were religious and pilgrimage sites, 10 were hill- stations, 7 were metropolitan cities, 6 had some heritage related attractions, 2 were beach related and the remaining were popular for cultural activities. – Eight of the top ten destinations were pilgrimage sites. – In terms of volume, 64% visited pilgrimage sites, 18.5% visited metropolitan cities, 11.2% visited hill stations, and 6.5% were at heritage related sites, while only 1.6% had been to the beach.
The importance of religious travel is also highlighted in the 2006 MARCH report where it noted: “in the case of Andhra Pradesh, the primary reason for high volume of tourist traffic is the location of Tirupati in the state” [Tirupati is the most popular pilgrimage sites in India with more than 24 million annual visitors recorded in 2002] (MARCH, 2006, p. 22).
The MARCH report also found that trains were more popular for travel with 24.8%. However, in comparison, the use of own automobiles and hired car was very low at 1.9% and 1.7% respectively. The average length of stay for a domestic traveller was four nights but more than 45% respondents preferred friends and family and only 23% used hotels. The data on accommodation appears to be constrained by the fact that it accounts only the registered establishments such as hotels. The proportion of such facilities is much smaller as compared to the vast range of accommodation provided through social networks. In pilgrimage sites, most visitors stay with hereditary priests and extended family connections rather than any commercial facilities (Shinde, 2010). It is also evident that hotels are primarily used for business and trade and leisure, both of which together contribute less than 20% of the total domestic tourism flows. Thus, a bulk of domestic tourism at the country level comprises of religious travel and social visits.
2) State Level Data: Insights from the State of Maharashtra
A tourism survey conducted by AC Nielsen ORG-MARG (2010) for the state of Maharashtra provides some insight into the tourism scenario at the state level. From this study http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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– 25% of the total domestic visitors to the state visited Mumbai, the capital city. – It seems obvious that of the top 20 destinations 8 sites were in Mumbai. However, it must be noted that of the rest 12 sites outside Mumbai, 10 are religious/pilgrimage sites. It is noticeable that even within the list of top ten destinations outside of Mumbai; three are major district centres which also are important pilgrimage sites. – The most frequented site outside Mumbai was Shirdi, a pilgrimage site and it accounted for 6.84% of visitors (about 8 million). – 26% respondents cited social visits as their purpose of travel, 23% visited other places for education and training, while recreation was only 13%. Although only 10% visits were categorised explicitly as “pilgrimage/religious” it may not be a correct representation. This is evident from the other data where most frequented destinations are pilgrimage/ religious sites and therefore the 26% of social visits should be added to get the overall picture. Close to a quarter of respondents had gone to major cities for education/training. All this put together means that leisure continues to occupy the minimum share. – Bus was the most widely used mode (74%) for within the state travel while train was more prominent for out of state travel (55%). – More than one-third of visitors stayed with their “friends and relatives” followed by the 24% who stayed in “non-star” hotels. More than 85% accommodation units fall under the “non-star” category; dharamshalas provided for less than 1% and the number was even lesser for temples. This distribution is apparent given that the purpose of travel for a large proportion of tourists is social visits. – In terms of accommodation, outside the metropolitan areas of Mumbai and Pune, the pilgrimage site of Shirdi tops the list with maximum number of hotel units and rooms. However, the sketchiness of the data on accommodation can be illustrated by examining the case of Shirdi. According to the study, Shirdi is estimated to have 169 hotels with 4,487 rooms. However this is inaccurate and does not represent the actual volume of tourist flows as found during a field investigation conducted by Shinde (2010). The field survey shows that the Sri Shirdi Sai Baba Sansthan Trust, the trust which manages the shrine of Sai Baba, itself provides accommodation for about 7,000 people through 812 rooms in 16 buildings in three locations. Accommodation provided by hotels and guest houses is also significant: In total, there are about 500 hotels with close to 7,000 rooms (including 150 owner-occupied guesthouses and 200 that only have a lodging facility). However, only 185 are authorized and registered with the local municipality. Such field-data seems to represent a more coherent picture that corresponds with the volume of tourist traffic.
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networks in providing accommodation and the primacy of surface transport including trains and bus in domestic tourism.
3) Local Destination Level Studies
A study conducted by GfK MODE (2010b) for Ministry of Tourism provides detailed information on tourism at the local destination level (referred to as GFK study hereafter). It included detailed case studies of five popular tourist destinations in five states to identify infrastructure gaps in tourism sector. These were Kullu-Manali (hill-station in Himachal Pradesh); Guwahti including Kaziranga (wild-life sanctuary in Assam); Badami Pattadakal (archaeological and heritage in Karnataka); Nanded (pilgrimage site in Maharashtra); and Chitrakoot (religious site and heritage site in Madhya Pradesh). In these five destinations 2587 interviews of tourists (including domestic and international) were conducted. It is evident from the inclusion of two pilgrimage sites for detailed assessment how important pilgrimage and religious travel is to domestic tourism. Key findings of this report are: – Almost 50% traffic is via railways (except in hilly areas where trains do not exist). – Close to 95% trips were self-organised with help of friends/relatives and less than 2% used travel agencies. – Around 60% of respondents travelled with family members. – More than 50% of the tourists are in the age group of 18-35 years and only 9% had crossed the age of 55 years. – Close to 60% stayed overnight in pilgrimage sites whereas less than 13% stayed overnight in wildlife sanctuary and archaeological site. – In overall, about 45% tourists were day-trippers, i.e. same-day visitors. – Domestic tourists ranked the need for facilities in the following order: 1. “Other services” (including power supply and telephone/mobile communication); 2. road connectivity; 3. civic administration; 4. rail connectivity; 5. maintenance and management of monument/ tourist attraction.
The larger proportion of younger age group implies that it is the main consumer and its demands reflect a qualitative change in tourism infrastructure. This is clearly reflected even in case of Nanded, the sikh pilgrimage site in Maharashta, where close to 50% respondents stayed in a commercial premise and only 25% stayed with friends and relatives (GfK MODE, 2010a). It seems that hotel industry is on rise in all forms of tourism destinations. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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– Purpose of travel: It can be firmly established that social visits and religious and pilgrimage travel continue to be the main type of tourism contributing to almost 70%- 80% to domestic tourism flows. – Destinations: Capital cities in all states, by virtue of being main economic centres as well as connecting and commuting nodes, attract a larger proportion of domestic tourists. However, it is essentially pilgrimage sites that remain the most frequently visited sites. Leisure travel to beaches and hill stations is still in its nascent stages amongst domestic travellers. – Mode of transport: Surface transport through bus and trains remains the most important mode of transport; however there are indications of increasing same day travel through privately owned and hired cars. – Accommodation: A large proportion of accommodation needs are fulfilled through social networks of friends and relatives. At present, star-hotels operate at relatively low occupancy rates, especially with regards to leisure tourism. The Tourism Statistics prepared by the government in 2003 estimated average hotel occupancy rate as 60.7%.19 Out of 60.7% occupancy, 40.1% was by domestic tourists and 20.6% by foreign tourists. The occupancy level in the quality hotels of 5-star and 5-star deluxe category was 66.6% and 60.2% respectively whereas the occupancy rate of heritage hotels was observed to be 55.4% (MoT, 2003). This data may be questionable because of its collection method. For instance, in this data, the second most popular pilgrimage site of Shirdi is shown to have only 6 hotels with a combined capacity of 431 rooms (one 5-star; one 3-star; one 1-star; and three unclassified). This data is completely at odds with the actual availability of accommodation in Shirdi as discussed earlier. Against this backdrop, it can only be anecdotally said that there is some demand for star hotels and that too from a relatively small base of upper and upper middle class income-groups. – Geographic distribution of tourism products: While pilgrimage travel is dispersed across the country, other tourism products have strong geographic connections. For instance beach-tourism is significant for the state of Goa; heritage and cultural tourism (palaces, forts, and arts and crafts) provides Rajasthan with unique tourism products; Wild-life tourism is the backbone of tourism to Madhya Pradesh; and so on. This means that tourism flows will continue to be uneven across the states and therefore it is necessary to support and promote domestic tourism in places where it is relatively underdeveloped. – For tourism promotion, at least two types of circuits exist: one which are state specific and connect all significant places in the state and, while the others are purpose- oriented such as pilgrimage travel. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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– Domestic tourists prioritize the need for better infrastructure facilities over any other form of tourism development strategies.
It is evident that large proportion of domestic tourism activities remains outside the reach of formal sector tourism enterprises such as registered star-hotels, tour companies, travel agents and so on. While the “indicative data” suggests some changes in the preference towards organised package tours and demand for better experience of leisure through luxury hotels, domestic tourism continues to be driven by and managed through social networks and enterprises whose services would generally be termed as informal. Consequently, a bulk of domestic tourism activities that is managed unregistered enterprises goes unnoticed and therefore unrecognised and only marginally represented in its overall contribution to tourism sector as a whole and therefore I would like to comment on the economics related to such activities in tourism.
4) Economics of Tourism
Most of the existing economic data in tourism is collected from registered enterprises and therefore presents only a broad view and that too an incomplete picture of how tourism affects the economic life of people involved in tourism activities that constitute the informal sector, which is largely providing the tourism services. Given the significance of social networks and informal enterprises and pilgrimage tourism for domestic tourism, I refer to a study of micro-economic impact of pilgrimage tourism. This study was conducted by Libison and Murlidharan (2008) for assessing the impacts of Sabrimala pilgrimage on neighbouring localities in the state of Kerala.
Sabrimala is a shaiva pilgrimage site in the state of Kerala. In 2002, about 12 million pilgrims visited Sabrimala (NCAER, 2003). Sabrimala pilgrimage has a strong seasonality and its peak period extends for about 40 days around the month of January. The trek to the hill of Sabrimala begins at the base-station of Pandalam. The locality of Pandalam is divided into 6 wards of which two wards have significant pilgrimage activity. From these wards housing 473 households, 100 respondents were interviewed for the purpose of this study. Table 4.2 outlines the findings of the survey about income before and after pilgrimage season. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Table 4.2 Income of households during and after pilgrimage season in Sabrimala No. Average monthly income in INR (Indian Rupees) Economic activity Pilgrimage Non-pilgrimage Percentage Difference season season change 1 Petty trading 25,013 15,276 9,737 63.74 2 Accommodation 37,500 25,000 12,500 50.00 3 Food/tea shops 37,850 11,300 26,550 234.96 4 Transportation facilities 56,392 25,285 31,107 123.03 5 Other economic activities 20,562 14,875 5,687 38.23 Aggregate 32,285 16,175 16,110 99.60 Source: adapted from Libison and Murlidharan (2008)
The following inferences can be arrived at from the data presented in table 4.2: – It is confirmed that incomes of households in the Pandalam locality change substantially from pilgrimage to non-pilgrimage season. All kinds of service providers were able to accrue at least 50% additional income during the pilgrimage season but the benefits were distributed unevenly. Although people who provide transportation facilities augmented their average monthly income in terms of absolute numbers (a difference of INR 31,107), a closer examination shows that the category of people who provided eatables benefited the most as their income rose by more than 230% in the pilgrimage season. – During non-pilgrimage season, both accommodation and transportation contributed about 27% each to the overall income of all households while food related activities were only to the extent of 12%. However, during pilgrimage season this equation changes to about 32%, 21% and 21% respectively. The change in income from accommodation is not so significant because this facility is immovable, cannot be expanded and is inelastic for that time period but travel and food demands can be easily met with increase in supply of those services. – Overall, 80% of the respondents believe that income from pilgrimage season had moderate to high positive impact on standard of living of their families while less than 19% of respondents felt no change in standard of living of their families.
The study of economics of pilgrimage in Sabrimala confirm that the important role played by informal sector services providers and that this type of economy is able to expand and contract leaving more sustainable options of income earning for livelihoods. This may not necessarily be true for other formal sector enterprises. Moreover, the reliance of domestic tourists on friends, relatives and social networks for organising their travel and accommodation underlines their need for such informal economy.
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5) Impacts of Tourism
While socio-cultural activities constitute a major tourism product in India, there are a few studies that discuss how tourist influxes are affecting the social and cultural life of host communities. In a study of impacts on culture in a pilgrimage site, as early as in 1976, Jindel (1976) had shown how priests and religious functionaries in the pilgrimage site of Nathdwara were modifying their performances and religious services to suit the demands of tourists. In more recent times, new forms of religious entrepreneurship are being observed (Shinde, 2010). The extent of changes to the socio-cultural fabric are relatively higher in cases where international tourists have flocked to pilgrimage sites as shown by Joseph (1994) in case of Pushkar. Some of these changes can be termed as progressive in catering to the newer demands and contemporary religiosity of the society. However, the other changes that attempt at presenting religion, culture, tribal lifestyles for tourism consumption and gaze are not only inauthentic but may also compromise the livelihood and identity of those involved (Jaitly, 2001). Few studies have also drawn attention to the scale and severity of environmental impacts of tourist flows and tourism-driven urban expansion in tourism destination (Kaur, 1984; Shinde, 2007). While much of this is due to the inadequate institutional arrangements to deal with tourism as an industry and its impacts, the state policy has also preferred to dwell on economic gains over addressing environmental problems. However any consideration of socio-cultural issues are “nearly absent” from tourism public policy and this “drawback indicates a lack of coherence, integration and rationale in tourism development” (Singh, 2002, p. 56).
4.1.3 Domestic Tourism in Policy and Administration
In this section I assess how the ground reality of domestic tourism industry is reflected onto the policy framework for administration of tourism. At the outset, I must state that the history of policy making in the tourism sector has been already discussed in great depth elsewhere by several scholars (EQUATIONS, 2002; Singh, 2002) and therefore I will focus on the most significant and recent policies that are in place.
Tourism sector has not been completely absent from the policy realm since India’s independence. In general, Tourism plans have been a part of the broader framework of the “Five-year planning system”. It was during the third FYP period (in 1966) that the Indian Tourism Development Corporation was established as a nodal agency to coordinate tourism activities. Subsequently, similar Tourism Development Corporations (TDC) were established
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After much political debate spanning decades, tourism has been listed as a responsibility of both federal and state governments. However, there are differences amongst states regarding their willingness to include Tourism in this Concurrent List: 18 states and 6 Union Territories have supported the move, 7 states including the most popular states of Kerala, Karnataka, and Madhya Pradesh have opposed such inclusion, and 4 including the states of Maharashtra and Rajasthan are yet to confirm their stand on the issue. It is understood that the activities of central government are concentrated on the needs of foreign tourists, while the states focus on domestic tourists. The states are required to develop their own policies, products and strategies within guidelines provided by central government. Consequently states have taken their own time in recognising and declaring tourism as an industry and therefore exhibit different stages of tourism development. With this brief overview, I will now discuss features of some of the significant policies related to domestic tourism.
The first comprehensive National Tourism Policy was drafted and discussed in the Parliament in 1982 (DoT, 2002). This policy was formulated in an environment of a closed economy with rigid licensing procedures. Neither did the policy emphasise the role of private sector nor was foreign investment envisaged. The policy also did not lay adequate emphasis on domestic tourism and the need for product development within the country. In analysing the 1982 policy and its subsequent revision in 1992, Singh (2002) finds a “near absence of a definite policy for domestic tourism” (p. 46) and argues that “the current national tourism policy is, at best, relatively undeveloped” (p. 52).
In the subsequent revision of the policy in 1992, the importance of domestic tourists was recognised by observing that “for the large number of our people who travel on pilgrimage or as tourists, facilities provided are minimal” [and that the state] will endeavour to substantially improve and expand facilities for domestic tourists” (cited from EQUATIONS, 2002, p. 19). In terms of actions, it added:
“Measures are afoot to facilitate domestic tourism. A new scheme for development of camping sites will be started especially for the low budget tourists. Central assistance is being provided to enable State Tourism Development Corporations investing in tented accommodation and other facilities necessary for setting up adventure camps. A scheme of Paying Guest Accommodation will also be introduced in as many places as possible to provide affordable and hygienic accommodation. Further, rules will be amended to provide for recognition to tour operators engaged in domestic tourism. In fact, it will be prescribed that all recognised tour operators/travel agents do a certain percentage of their turnover in domestic tourism. These measures will, no doubt, http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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However, the underlying image of domestic tourism was that of “low-budget” and it required different standards of facilities. Similarly, although the policy recognised the significance of pilgrim flows for domestic tourism and the need for infrastructure facilities in pilgrim centres, it did little for actual improvement in those places. The Central Government had proposed to earmark a sum of Rs 5.00 crores as Central assistance every year to enable State Tourism Development Corporations/private entrepreneurs to set up or improve accommodation facilities, way-side amenities and transport systems at important pilgrim centres but such implementation schemes were not worked out properly. Nonetheless, this policy should be credited for starting a systematic approach to harness the potential of tourism in the country.
It is not until the subsequent National Tourism Policy of 2002 that the state seriously began to investigate factors that affected proper implementation. It was argued that the low priority for the tourism sector as a whole led to its “marginal role in India’s development programmes to date (DoT, 2002, p. 10)”. Thus, this policy which is now current, aims to enhance employment potential within the tourism sector as well as to foster economic integration through developing linkages with other sectors and has set the following vision:
“Achieve a superior quality of life for India’s peoples through Tourism which would provide a unique opportunity for physical invigoration, mental rejuvenation, cultural enrichment and spiritual elevation” (DoT, 2002, p. 11).
This vision is to be achieved through five key objectives: 1. Positioning and maintaining tourism development as a national priority activity; 2. enhancing and maintaining the competitiveness of India as a tourism destination; 3. improving India’s existing tourism products; 4. creation of world class infrastructure; 5. developing sustained and effective marketing plans and programmes.
One amongst the seven key directions to achieve these objectives is according high importance to domestic tourism as a major driver of tourism growth. The 2002 policy document highlights seven key areas to provide the thrust to tourism development. These are: welcome (swagat), information (suchana), facilitation (suvidha), safety (suraksha), cooperation (sahyog) and infrastructure development (samrachana); and cleanliness (safai).
The objectives and thrust areas have become the guiding forces for development of state- level policies also illustrated in case of Maharashtra’s tourism policy. The first policy statement on tourism in Maharashtra was formulated in November 1993 and revised in http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
20 Tourism Policy of Maharashtra 2006; Government of Maharashtra; Department of Tourism and Cultural Affairs; Resolution No. MTC- 2005/2/CR-172/Tourism
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in Maharashtra doubled from 4.12 million to 8.48 million. The revision done in 2006 is now current and referred to as the Action Plan (DoTCA, 2006). Some of the actions proposed in this plan that are relevant for present discussion are: 1. Development of infrastructure at tourist destination: various tourism facilities such as accommodation facilities, eateries, toilets, information centres, etc would be developed at all destinations. For this, the incentive policy proposed will encourage private partnership in tourism related activities and infrastructure development. 2. Accessibility to tourism destinations and wayside amenities. 3. Development Control regulation at destination: Development Control regulations would be prepared to work as guidelines for development at and around important tourism destinations. 4. The concept of Public-Private Partnerships (PPP) would be sought for the development of resorts at select destinations, for organization of festivals, and conservation of monuments. 5. Cultural tourism: Distinctive aspects of Maharashtra’s rich culture and tradition would be identified and promoted including state’s folk arts, dance and music programmes at tourist destinations and at MTDC resorts/destinations. 6. Pilgrimage circuits should be developed to connect pilgrimages to pilgrimage centres like Jyotirlingas, Ashta Vinayaks and other famous temples at Shirdi, Pandharpur, Kolhapur, etc.
While the intentions behind such actions are laudable, it is necessary to assess whether these intents are appropriate and if the state government is able to provide enough support through these to achieve the desired outcomes in tourism development. This assessment is detailed in the following section.
4.1.4 Discussion: The Meeting of Ground Reality and Policy
In this section I examine the areas where policy has evolved from and directly responds to the domestic tourism industry as well as substantial gaps that exist between the policy and the functioning of the industry.
1) Tourism Promotion
In case of domestic tourism, the focus of the current 2002 policy is on to “substantially
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intervention through policy. More so, not all pilgrimage sites are in rural areas; on the contrary it is well documented that most pilgrimage sites are rapidly urbanising.
The policy recognises that “in the domestic market where the focus of interest is rural or village tourism, a different positioning statement is required [and] this has to be related to the concept of “returning to or rediscovering ones’ roots” in order to escape the complexities and pressures of India’s cities for the calm green of the rural countryside and the simplicity of the traditional village” (DoT, 2002, pp. 20-21). This positioning in itself is questionable and requires more research. It is common knowledge that the migratory processes from rural areas to urban areas are often distress related. And therefore going back to rural areas for leisure tourism seems a distant possibility: such travel is motivated more due to social and cultural reasons rather than tourism. There is little or almost no evidence that urban residents actually visit rural areas for leisure and if this trend is growing. Even from supply side, rural tourism has been a problematic product as demonstrated in one of the pilot projects. The aim of the Rural Tourism project at Anegundi, Karnataka was to promote tourism while preserving the physical and cultural characters of Anegundi village by promoting eco-tourism. However, its success, if there was any, was short-lived. An assessment of the project reads:
“Although the project generated employment opportunities, and involved restoration of old dwellings as “business incubators” (guesthouses, cafeterias, crafts shops, internet cafes, etc), it has not been successful and has almost stopped functioning. “Number of tourists’ arrival is also not very significant” (CES, 2008, p. 84).
The nostalgia about “roots” may be a driving factor but does not appear to be so significant that it should be accorded priority over other more significant forms of tourism. Similarly, the thrust of the state in its scheme of Circuits-cum-Destinations for Intensive Development needs to be reviewed. Of the 9 travel circuits included this scheme; six were themed around nature tourism.21 It is now well established that such form of leisure tourism is not really what domestic tourists are into. Another case in point is the insistence on promoting heritage tourism to monuments identified and listed by Archaeological Survey of India as heritage structures important for conservation. The India Tourism Statistics of 2003 shows that 22.2 million visitors (including domestic and foreigners) had visited the 131 ASI monuments; this is less than 4% of the total domestic tourists recorded then (MoT, 2003). It can further be speculated that a large proportion within these would have been foreign tourists leaving very less domestic visitors. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
21 These travel circuits were Kulu- Manali-Leh; Gwalior; Bagdogra- Sikkim; Bhubhaneswar-Puri-Konark; Hyderabad- Tirupati; Madras- Mamallapuram; Rishikesh- Gangogtri- Badrinath; Ujjain-Indore- Omkareshwar; Jaisalmer- Jodhpur
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Thus, the policy does not work with the existing trend of growth in domestic tourism industry. Rather its focus is misplaced and need to be realigned to promote leisure tourism in a way that is more accessible and workable.
2) Tourism Product Development
In the current National Tourism Policy, the third objective of “improving and expanding product development” highlights various subtypes of tourism for cultural, rural, adventure, wildlife, island, beach, heritage, and cuisine tourism and so on in certain places. While there is considerable focus on branding and imaging of destination for various kinds of tourism, there is little or negligible reference to the carrying capacities of these places and how they can sustain continued influx of visitors. A case in point is the sites examined in the MARCH 2006 assessment of promotion and publicity at tourist destinations. Of the total 47 sites that were covered in Print media 23 were wildlife related, six were pilgrimage sites, and the remaining one-third were of importance for cultural tourism (MARCH, 2006). Clearly, the emphasis on assessing the success of advertising wildlife tourism and adventure tourism is high. However, it does not consider if there are any basic facilities for tourists and whether these places can support a larger volume of visitors. Singh has also argued that the state should rather than “channelling all its resources into wayward marketing and promotion” the state should take an active role in infrastructural development and in monitoring developments (Singh, 2002, p. 55).
3) Developing and Managing Tourism Infrastructure
One of the key requirements from a broad policy is its ability to guide tourism development through infrastructure development. Let us consider the objective of the national tourism policy in creating “world-class infrastructure”. The policy aptly recognises that:
India’s physical infrastructure is the very foundation on which tourism is to be built, and this ranges from ports of entry, to modes of transport to destinations, be they airways, roads, railways, or waterways, to urban infrastructure supporting tourism facilities such as access roads, power and electricity, water supply, sewage, and telecommunications amongst others (DoT, 2002, p. 18).
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All marketing plans and programmes can be effective only when the experience of visitors is true to the image of a place that is projected. Most visitor surveys point to the acute lack of infrastructure in most places. And this is where the institutional structure developed for tourism management fails in managing tourism. The existing system of tourism administration does not have enough authority or resources for the development of infrastructure necessary for tourists and therefore relies on the local municipal governments and state agencies to do the same. This lacuna continues in the state policies as well as is illustrated in case of Maharashtra’s tourism policy which states that:
Tourism infrastructure has not yet been perceived as a single package. It takes about 8-10 years for the development of a particular destination and for all necessary infrastructures to become available there…. Hence it is proposed that all infrastructure providing Departments (Public Works Department, Irrigation, Power, etc) and Corporations (MSRTC, CIDCO, MMB, etc) shall reserve a minimum of 5% of their annual budget outlay to be spent strictly on projects and development plans prepared by the Tourism Department (DoTCA, 2006, p. 14)
Both the ambitions and the mechanisms of tourism departments to be able to carve out finances from other state government agencies appear far-fetched in the light of the fact that such agencies are already known to be inefficient in service delivery and generally rely on other agencies for obtaining work. In case of local municipalities, it is well known how they struggle to deliver adequate services and infrastructure to their own constituencies. To superimpose demands of the floating population of visitors is altogether an added responsibility which most local–self governments are neither willing to nor prepared to shoulder. It then is surprising that the current policy does not offer any concrete steps towards development of infrastructure in tourist destinations.
Even where some pilot projects of infrastructure improvement are carried out, the results are shown as disappointing in a report prepared by CES for the Ministry of Tourism in 2008. In this report, the centrally funded “Scheme of Financial Assistance to States for development of circuits and destinations” was evaluated with the help of 41 sample projects spread across 11 states (CES, 2008). The following parameters were used: tourist inflow, employment generation, system of maintenance and sustainability, and social upliftment. I will refer to two projects only. First is the project on improvement of facilities for Dehu- Alandi-Pandharpur pilgrimage circuit in Maharashtra in 2004. According to the report, this project had more “qualitative impact” rather than quantitative: “the facilities created (provision of public utilities and amenities such as shelter, toilets, pathways and drinking water, etc) have been heavily used by pilgrims in past three years and pilgrims are very http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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employment generation” (CES, 2008, p. 51). It is evident that provision of services and amenities amounts only to “qualitative improvement” and therefore not advisable for tourism promotion. The report seems to reinforce the view that more tourists can be attracted mainly by investing in large scale capital woks as demonstrated in the “more successful projects”.
The bureaucratic structure for tourism administration also influences the destination development: the Centre often devises several promotion schemes and transfers it to the state level for implementation. However, such schemes are less effective as they are likely to conflict with local priorities and the available institutional structure to execute them.
4) Private Sector Involvement
Similar to other sectors and industries, tourism development remained state-driven for several decades. It is only since the 1970s that private sector began to play an active role in the development of hotels, tourist complexes, and other forms of entertainment and tourism products. The most notable examples of public private partnership are in the ‘heritage’ categories. Examples include products developed with the railways such as the Royal Orient, Palace on Wheels, etc. But more involvement of private sector has also meant formation of tourism industry lobbies and their assertiveness which has to be treaded cautiously (Singh, 2002). An amenable model is where state and private sector both have significant stakes and benefit. This is demonstrated in the concept of Heritage hotels, whereby owners of havelis and mahals that are partially or wholly abandoned have the option of converting them into hotels for tourists. Although in public use, the properties remain the possession of their owners, who may or may not hire professional managers to assist in their operation. For its part, the government provides subsidies, promotional and licensing benefits to such units (Singh, 2002, p. 53). Such successful partnerships, however, have been few and need to extend to other tourism resources.
A major problem in realising the benefits from the involvement of private sector is the rigid definitions of what constitute a private sector enterprise in tourism. This is clearly seen in Maharashtra’s tourism policy where a “Tourism undertaking” means a legal entity in the form of a registered company under the Companies Act, 1956, or a partnership firm, a Registered Trust or a legally registered co-operative society or an individual proprietary concern, engaged in or to be engaging in one or more tourism projects (DoTCA, 2006, p. 7). Accordingly, in the policy “eligible units” for state recognition and assistance include hotels, heritage hotels, resorts…. and units registered under the B&B Scheme of MTDC, motels http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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informality is due to the high volume of religious travel and social travel where services are provided through social networks and not necessarily through registered tourist agencies. The 5.3% contribution of tourism to GDP and 5.6% contribution to employment creation at the national level are indicative of this bias (cited from DoT, 2002).
4.1.5 Conclusion and Recommendation
This paper has drawn attention to the domestic tourism policy and its collisions with ground reality. It has found little evidence that suggests that the notable growth in domestic tourism is a direct outcome of policy measures; rather the inherent structure of Indian society and its social needs that continue to drive domestic tourism and the growth further influenced by the broader political and economic changes since post-liberalisation in 1990s. I agree with Singh’s criticism that “public policy on tourism is severely afflicted by the serious lack of a research base, which this reduces the exercise to mere deskwork, with undue reliance on imagination and ‘guesstimates’ [which]… in turn, prompts a series of associated problems, for example, adhocisim, a top-down approach, and poorly integrated activities” (Singh, 2002, p. 56). While urging for a stronger political will, she has also concluded that “Theoretically, government policies towards tourism are not the major problem... [and that] rather, the machinery that implements these policies must be examined for its many shortcomings” (Singh, 2002, p. 56). Continuing this line, I would further argue that even theoretically many policies related to domestic tourism need to be refocused and adjusted to both respond to existing trends as well as visualise the future needs. Although a systematic policy for domestic tourism is only beginning to evolve, a timely evaluation of its intents and approaches are needed as demonstrated in this paper.
This paper focused on highlighting trends in domestic industry that sometime find mention in media but which are not discussed from a scholarly perspective. In doing so, I have said nothing about the much-hyped formal tourist venture, enterprises and tourism promotion campaigns such as Incredible India, “India festivals abroad” for reasons stated earlier. However, a systematic analysis of their influence on domestic tourism is warranted and can add to a better understanding of this sector. A similar concern is with the uneven development of domestic tourism across different states. On the one hand, the so-called successful models as seen in the state of Kerala also require closer examination that goes beyond the discourse of economic gains into several socio-cultural and environmental dimensions. On the other, it needs to be seen if some measures from such models can be adapted in other states to realise their tourism potentials. In terms of tourism product
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facilities. In moving away from the conventional reporting of tourism through formal and registered agencies and enterprises, this paper argues for some serious thinking and research into recognising and accounting for the contribution of informal sector in tourism for a fuller and better understanding of the domestic tourism industry in India.
Recommendation
Improvements to the existing domestic tourism products to enhance their values to the potential visitors 1. Two pronged approach is necessary for enhancement of domestic tourism products. First, to increasing connectivity between destinations those form tourism-circuits as identified by different state tourism agencies. Successful examples include Kerala tourism where all types of destinations are packaged into one itinerary and promoted with special deals. Second, central agencies should promote specific sub-types of tourism by identifying those destinations as a part of circuits and by providing package discounts for visiting them. Examples include clubbing together as many sites as possible related to adventure tourism across neighbouring states. 2. It is seen that all states promote all forms of tourism. For more effectiveness and overcoming competition within sites, states need to identify strategic sub-type of tourism and destinations to serve that form of tourism. For example, Palace-tourism and fort-tourism should continue to be the thrust of tourism agencies in Rajasthan and likewise.
Policies and marketing programmes to develop domestic tourism 1. Marketing programmes should be adjusted to serve tourism types that contribute the larger shares to domestic tourism flows. For instance, religious tourism and cultural tourism destinations should also be marketed with the same interest as beach-tourism is promoted. 2. There has been an increase in Indian tourists going overseas for holidaying. Some proportion of these tourists can be diverted to domestic destinations if their image is enhanced by comparing them with similar destinations overseas. 3. A large proportion of domestic tourism is about visiting friends and relatives and religious travel which means that most tourists stay with friends. It also means that the main cost generally is transport. A strategy of offering “fuel vouchers” to certain destinations can go a long way in promoting those destinations for domestic tourism.
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sustainability charter should be based on a destination’s carrying capacity and particularly focus on the environmental sustainability. 2. It is necessary that some kind of formal recognition should be extended to the unregistered service providers of domestic tourism to ensure economic sustainability for the tourism industry. Such recognition can help the informal service agencies to access most benefits devised in the tourism policies and projects.
Administration of tourism The Tourism Development Corporations should either fully involve in providing accommodation and adequate services for those establishments or should not venture into building more accommodation. Instead such agencies should focus on generating high- quality information necessary for tourists and disseminate it. As a policy, Tourist Information Centres that include sanitation facilities and cafeterias should be promoted utilizing public-private partnerships.
Rectification of shortcomings in destinations 1. Separate financial provisions need to be made in the budgets of local governments for providing services including water supply, mobile toilets and regular sanitation for tourists especially during major events and festivals. 2. It should be mandated that Tourism Development Corporation work in cooperation with local governments and provide regular financial and technical assistance for addressing problems associated with tourist flows.
Involving local communities 1. Clear Terms of Reference for the engagement of local community members should be framed within tourism policy. This will not only help in visible presence and representation of local community in tourism development but also assist in redistribution of benefits to a large section of host communities. 2. Mechanisms should be devised to create greater awareness amongst host communities regarding of “heritage-related” tourism products so that these communities can participate in heritage tourism. This is particularly important in case of sites that are near the monuments listed by Archaeological Survey of India as having exceptional heritage significance.
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References
AC Nielsen ORG-MARG (2010), Final Report: Tourism Survey for State of Maharashtra, New Delhi: Market Research Division, Ministry of Tourism, Government of India. Aramberri, J. (2004), 'Reading the Tourist Mind: Indian Tourism: The Next Decade', in: Tourism Recreation Research, 29(1), pp. 1-14. CES (2008), Evaluation of the Scheme of Financial Assistance to States for Development of Circuits/Destinations (Assessment Report), New Delhi: Consulting Engineering Services (CES) and Ministry of Tourism, Government of India. DoT (2002), National Tourism Policy 2002, New Delhi: Ministry of Tourism and Culture, Government of India. DoT (2010), India Tourism Statistics at a glance 2010, New Delhi: Market Research Division, Ministry of Tourism and Culture, Government of India. DoTCA (2006), Tourism Policy of Maharashtra, Mumbai: Department of Tourism and Cultural Affairs (DoTCA), Government of Maharashtra. EQUATIONS (2002), Tourism Policy of India: An Exploratory Study. Bangalore: Equitable Tourism Options (EQUATIONS). GfK MODE (2010a), Report on Infrastructure Gaps in Tourism Sector in Nanded, Maharashtra (Project report), New Delhi: Market Research Division, Ministry of Tourism, Government of India. GfK MODE (2010b), Summary Report on Infrastructure Gaps in Tourism Sector at Five Tourist Destinations in India Based on Perception of Tourists (Project report), New Delhi: Market Research Division, Ministry of Tourism, Government of India. Jaitly, J. (2001), Canned Culture: Temples, Fairs and Festivals: Cultural Impact of Tourism in India, The Eye, II Jindel, R. (1976), Culture of a Sacred Town: A Sociological Study of Nathdwara, Bombay: Popular Prakashan. Joseph, C. A. (1994), Temples, Tourists and the Politics of Exclusion: The Articulation of Sacred Space at the Hindu Pilgrimage Centre of Pushkar, India, Unpublished Ph.D. thesis, University of Rochester. Kaur, J. (1984), Badrinath: 'Himalaya's Super Pilgrimage Resort', in: Tourism Recreation Research, IX(2), 21-26. Libison, K. B., and Murlidharan, K. P. (2008), 'Economic benefits of pilgrimage tourism: A case study of Sabrimala pilgrimage with special reference to Pandalam rural locality in Kerala (India)', in: South Asian Journal of Tourism and Heritage, 1(1), pp. 57-64. MARCH (2006), Evaluation of the scheme Domestic Promotion and Publicity including Hospitality (DPPH) (Assessment Report), New Delhi: MARCH Marketing Research and Consultancy and Ministry of Tourism, Government of India. MARCH Marketing Consultancy and Research (2006), Evaluation of the scheme Domestic Promotion and Publicity including Hospitality (DPPH) (Assessment Report), New Delhi: Ministry of Tourism, Government of India. MoT (2003), India Tourism Statistics 2003, New Delhi: Market Research Division, Ministry of Tourism (MoT), Government of India. NCAER (2003), Domestic Tourism Survey: 2002-2003, New Delhi: National Council of Applied Economic Research and Ministry of Tourism and Culture, Government of India. Shinde, K. A. (2007), 'Pilgrimage and the Environment: Challenges in a Pilgrimage Centre', in: Current Issues in Tourism, 10(4), pp. 343-365. Shinde, K. A. (2010), 'Religious entrepreneurs and entrepreneurship in religious tourism in India', in: International Journal of Tourism Research, 12(5), pp. 523–535. Singh, S. (2002), 'Tourism in India: Policy pitfalls', in: Asia Pacific Journal of Tourism Research, 7(1), pp. 45-59. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Chapter 5 ______
Indonesia
5.1 Domestic Tourism in Indonesia By Dr Myra P. Gunawan and Ms Yani Adriani
5.1.1 Overall Country Profile
1) General Profile
Indonesia is the largest archipelagic country in the world with 17,504 islands of varying sizes. It is the fourth most populous country in the world. The geographical extent of the country covers a land area of 1,910,931.32 km2 with a 104,000 km shoreline, a 284,210.90 km2 territorial sea area and 2,981,211 km2 Economic Exclusive Zone (Pusat Data Statistik dan Informasi 2011). Administratively, the country consists of 33 provinces, which include 399 districts and 98 municipalities, all together covering 78,198 villages (Statistics Indonesia 2011).
In terms of population, Indonesia is the world’s fourth largest country with a total population of 237,641 million(s) in 2010, an increase of about 14% over the 2000’s population census. The annual growth rate of the Indonesian population has decreased from one decade to another. In the 1971-80 decade the population growth rate was 2.31%, which decreased to 1.98% in the following decade, and further approaching the 21st century to 1.49%. During the latest decade the annual population growth rate was 1.42% (Badan Pusat Statistik 2011a; Statistics Indonesia 2011).
Population is much concentrated on the island of Java; 57.5% of the population resides on 6.8% of the total land area of the country. The urban-rural population ratio continues to increase with the urban population reaching 44% in 2010. The gender proportion is balanced, with the men to women ratio of 1.01 in 2010 (Badan Pusat Statistik 2010). http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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171.76 million, among which 117.37 million (68.3%) are economically active (Badan Pusat Statistik 2011b).
Agriculture remains the dominant occupation, which comprises 35.86% of the total working population; trade, hotel and restaurant absorbed 21.33%, manufacturing 13.26%, and other services 15.16% (Badan Pusat Statistik 2011c).
The GDP in 2010 was IDR 6,422,918.2 billion which means slightly over IDR 27 million per capita annual income for the 237 million population. The GDP at constant price increased from IDR 1,389,769.90 billion in 2000 to IDR 2,310,689.8 billion(s) in 2010 or 66.3% increase in the first decade of the new millennium (Statistics Indonesia 2011).
2) Tourism as a Strategic Sector
Tourism has played a strategic role in Indonesia since the Dutch colonial period, with changing dimensions of its importance. Indonesia (as The East Indies) became a destination for not only the Dutch but also people from other European countries, consuming packages sold by Dutch travel operators during colonial times.
At certain distances from the big cities at that time tourism places developed in highland locations for domestic weekenders and tourists from farther origins. The highland city of Bandung, the planned capital-to-be of the East Indies, hosted annual international trade fairs in the early twentieth century and during early independence, Bandung hosted the first Asian African Conference (1955).
The first international hotel in the capital of Jakarta was built in the 1960’s, on the instruction of Soekarno, the first President of Indonesia. It is now one of the biggest and most modern hotel-and-shopping paradises in the country.
In the 1980’s when the country’s income from oil and gas was declining, the tourism industry was boosted to improve the country’s foreign exchange earnings. Since then, the government has prioritized the maintenance and further development of existing tourism assets, supported new investment through policies that ease land acquisitions, credit applications, and permit issuances as well as fostering marketing efforts to potential source markets.
With the growth of the Indonesian middle class, the government established in the early http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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markets – international and especially domestic – growing steadily, backed up by cultural as well as natural resources, of which Indonesia has much to offer.
At the close of the last millennium international arrivals reached its peak in 1997 before the multi-dimensional national crisis that hit the region in 1998. Recovery of international tourism was slow, due to many kinds of externalities: terrorism that hit Bali and other places in the country, the avian flu and other epidemics, as well as natural disasters that befell many places of the country. Fortunately, the huge domestic market with its extensive geographical reach and adaptability has been able to sustain tourism related businesses through this period. Not only did the numbers of domestic travellers as well as their numbers of trips grow steadily, geographical reach also improved with the growth of low cost air carriers that made the outer islands more accessible.
During difficult times, tourism has shown resiliency that has resulted in stronger political support for the sector. The national tourism development budget has improved, more than tripling during the latest decade.
3) Position of Tourism Sector in National Development
Under the directives of the Long Term National Development Plan (2005-2025) of the Republic of Indonesia, tourism is expected to play a major role in creating a competitive nation, through strengthening the domestic economy with global orientation and competitiveness. Tourism is developed in order to encourage economic activities and improve the image of the country, as well as improving the welfare of the local population through employment creation.
Tourism development is directed to responsibly utilize the heterogeneity of the country’s natural tourism resources and its potential as the largest region for marine tourism. Sustainable tourism is directed to encourage economic activities related to the development of the nation.
The tourism development vision is formulated based on the national development vision: autonomous, advanced, just (equal) and prosperous Indonesia. Two important keywords in the former strategic plans were identity and welfare. Tourism is expected to bridge for the people of Indonesia a state moving towards general prosperity, while always preserving its national identity. The present Ministry of Tourism and Creative Economy (MTCE) has stressed quality of life, value-added, and sustaining art and culture. Its mission is very http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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population, through improved understanding amongst the different cultures and ethnicities to make “unity in diversity” (the national motto) a realization. It is clear that tourism is the means rather than the goal.
4) Tourism Position in the Bureaucracy
Tourism is considered a strategic sector, under the Coordinating Ministry for Economic Affairs, with MTCE as the focal ministry in charge of tourism development in the country since late 2011. For the past decade, the focal ministry was the Ministry of Culture and Tourism (MCT), under the Coordinating Ministry for Economic Affairs, and also Coordinating Ministry for Community Welfare; in the 1990’s it was under the Ministry of Tourism, Post and Telecommunication (MTPT), and changed over time before transforming to MCT. Despite all the changes in the bureaucratic set-up the most important indicator that tourism is receiving more political support is the ‘upgrade’ from under only one Directorate General in the Ministry of MTPT, into two separate Directorate Generals and the addition of a Directorate level for Tourism Research and Development under the following MCT as well as MTCE.
The two Directorate Generals (DGs) are the DG for Marketing and the DG for Destination Development. A special Directorate for Domestic Tourism Promotion is placed under the DG for Marketing.
At the provincial, district and municipality levels, the offices for tourism are diverse, depending on the position of tourism in the regional and local economies. As a ‘sector’, tourism is an option in regional economic development which determines the position of tourism related administration/bureaucracy. While special offices for transportation, education, health and public works are compulsory in the bureaucracy, a tourism office is not. Provinces like Bali, and the Capital Region of Jakarta for instance have a specific Tourism Office (Dinas Pariwisata) indicating the importance of tourism in their regional economies. Other provinces have offices combining tourism with culture, following the former ministry’s nomenclature or other kind of combinations. At the district and municipality level, tourism offices are even more varied, from a single specific Tourism Office (Dinas Pariwisata) to an office for various matters such as tourism and manpower, tourism and transportation, tourism and culture, and at the most extreme instance the Office for Tourism, Art, Culture, Youth and Sports combined in one portfolio.
Despite the focal ministry in charge for tourism, in fact tourism is a multi-ministry concern; there are many other ministries which are directly or indirectly related to tourism. The http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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branch company created specifically for tourism and government-owned accommodations in several locations; The Ministry of Marine and Fishery has the authority of the Sea (underwater) National Park and also the small outer islands.
In addition, there are four institutes for higher education in tourism and hospitality under the focal ministry. Manpower and human resource development (tourism education and training) is also managed under the Ministry of National Education and Culture, as well as the Ministry for Manpower Development and Transmigration.
The Ministry of Youth and Sports, The Ministry of the Environment, The Ministry for the Acceleration of the Lesser Developed Regions, The Ministry of Home Affairs, The Ministry for Public Works are also amongst the tourism development related ministries dealing with matters that relate to their respective responsibilities.
At the National Planning Board, there is a special Directorate for Culture, Tourism, Youth and Sports. All these indicate the complexity of tourism development in the large and diverse country of Indonesia.
5) Tourism Resources and Infrastructure
1. National Parks – Among the underutilized resources so far are the country’s national parks and nature preserves specifically dedicated for tourism (Taman Wisata Alam - TWA). The government has assigned as National Parks 33 locations covering areas of more than 11 million ha on the main islands under the auspices of the Ministry of Forestry and six locations covering 3.7 million ha of water as Marine National Parks under the Ministry of Marine and Fishery. In addition, 79 nature preserves on land and 15 locations of water parks specifically dedicated for tourism are distributed through- out the country.
2. Cultural and Natural Heritage – Indonesia is blessed with a rich cultural heritage which has been protected for sustainability under national Law Number 11-2010 on Cultural Heritage (Cagar Budaya). Local governments as well as provincial governments document their cultural heritage in addition to those sites given status as national heritage. Among its heritage Indonesia has seven World Heritage Sites, namely the Borobudur, Prambanan, Ujung Kulon on Java Island, Komodo in Nusa Tenggara Timur, east of Bali, Lorentz in Papua and the Sumatera Tropical Rain Forest. Besides these, there are 27 on the nomination list, eight in Java, two in Bali and the http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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3. Accommodation – Accommodation is the preferred component for tourism investment at different scales: multi-national enterprises, large national investors as well as medium and small enterprises and even informal sectors. Classified hotels as well as other kinds of accommodation have grown significantly in the past 30 years. In 1980 capacity was recorded as 16,097 hotel rooms, growing to double in 1990 (35,989 rooms) and more than double in the following decade reaching close to 100,000 rooms at the end of the millennium. In the 21st century capacity is accelerating. It is recorded that there were 353,138 rooms available in 2010, comprising 124,789 rooms (35.3%) in 1,306 classified hotel establishments and 228,349 rooms (64.7%) in 13,281 non-classified accommodations (Statistics Indonesia 2011). Until today, accommodation supply is still concentrated in certain provinces, the more developed ones, in metropolitan areas and urban concentrations. The gap between provinces is so wide, room capacity ranges from 1,191 rooms in the province of Gorontalo in the northern part of Sulawesi to 46,363 rooms in the popular island province of Bali (Statistics Indonesia 2011).
Figure 5.1 Number of accommodation establishments and room capacity by province and type of accommodation
Source: Statistics Indonesia 2011
Accommodations are concentrated in Java and Bali with more than 59% of the national total of classified establishments, and more than 54% of non-classified accommodations. Other provinces with significant numbers of classified accommodation are North Sumatera, South Sulawesi, Riau Archipelago, Riau, West http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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4. Restaurants and Other Food Services – Restaurants and other food services are also growing rapidly in destinations. By the end of the millennium the number of different classes of restaurants registered was only 520 establishments, and within the next ten year period it grew more than four-fold to 2,235 establishments in 2008. In addition, there are still many more food stalls and informal sectors serving the needs of both tourists and residents in almost all activity centres. Destinations like West Java’s capital city of Bandung are very popular for their culinary attractions. Each region in the country has its own culinary tradition, specialty/traditional foods that are being improved in their processing, aesthetic appearance and delivery systems, to be a part of the attractions for tourists and visitors.
5. Infrastructure and Transportation – Infrastructure is still an issue for many destinations in the country. Many potential destinations lack infrastructure, despite rapid growth and the priority placed by the government. Demand for infrastructure is growing faster than the government and the private sectors have been able to develop so far. In 2010/2011, there were all-in-all 237 airports of various sizes, among which 29 are international airports. Forty six airports are to be relocated because of growing demands that make existing locations unsuitable. There are 39 international carriers and 15 national carriers serving international connections and 32 national carriers for domestic travel (Direktorat Jenderal Perhubungan Udara 2011).
While the country has 478,667 km of roadways, consisting of 38,570 km of national highways, 48,020 km provincial highways and 392,077 km of urban and district roads, road infrastructure is considered the greatest hindrance to accessing the tourism resources (Statistics Indonesia 2011). The accelerating growth of car and motorcycle ownership has influenced the intensity of travel and reach as well. Recorded car and motorcycle ownership in 2011 was 8.83 million(s) passenger cars and 61.13 million(s) motorcycles, among which more than 50% were on Java island (Statistics Indonesia 2011). Sales of cars reached over 800,000 units and 7.58 million(s) motorcycles in 2011 alone (Kompas Newspaper 12 March 2012). Besides its influence on the intra- urban daily travel, motorcycles and cars have also stimulated travel which might otherwise be unaffordable – weekend recreation outside one’s usual environment and holiday travel to tourists destinations.
6) Tourism Growth
Domestic as well as international tourism has grown steadily in the past decades. The http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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The growth of international arrivals in the latest decade fluctuated due to many and varied externalities: the national crisis in 1998, terrorism threats, avian flu and other epidemics, natural disasters among them. Domestic travel and the number of trips are increasing more steadily, in line with the growing middle class and domestic accessibilities to different regions and areas of interests. Average expenditure of both international and domestic tourists also grew in line with the development of destinations, infrastructure and facilities, as well as improved services.
Figure 5.2 Distribution of domestic tourists by province, 2010
Source: Ministry of Culture and Tourism 2010; Ministry of Tourism and Creative Economy 2012
Figure 5.3 Distribution of international tourists by province, 2010 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Source: Ministry of Culture and Tourism 2010; Ministry of Tourism and Creative Economy 2012
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7) Calendar of Events and National Holidays
Tourism, domestic tourism in particular, has benefited from the multicultural make-up of Indonesia’s population as well as the natural and cultural diversities of the different regions. Differences are among the strongest factors in attracting people to visit a place. Under the nation’s philosophical foundation, Pancasila (the Five Basic Principles), the government acknowledges five different religions and their observed holidays. The policy on national holidays covers the several ‘different new years’, other religious days, and national Independence Day – totalling 14 days annually.
There is a policy that if a national holiday falls on a Sunday or Saturday, the day before or after will be an official day off. A policy on common leave for government officials includes a few days off before and after the annual Moslem festival of Idul Fitri. This is also done during the Christmas-New Year period at the end of the year. The dates of national holidays, except for Independence Day, change from year-to-year due to the different calendar systems and are publicized at the beginning of each year to enable people to plan their holiday/travel, and for the tourism industry to prepare for peaks and low seasons.
The decision for a government five-day work week in the late 1990’s was also adopted by most private companies and has turned out to be very effective in fostering people’s travel, domestic as well as international.
Cultural events may amount to hundreds, if regional and local events are included. These are spread all over the country through-out the year. Cultural events are usually related to religious beliefs, traditional customs relating to life cycles (birth, marriage, pregnancy, death). These rites differ from one place or culture to another. There are also traditional celebrations related to people’s livelihoods: start of the fishing season, start of the rice- planting seasons, harvest festivals, and various others.
Among the most unique traditional events in different regions are the Pasola of Sumba Island, the Kesodo in East Java, the Easter procession in East Flores, Ngaben in Bali and funeral ceremonies in Toraja, which are all related to local traditional beliefs. Each province may also create its own events or festivals such as the Sriwijaya Festival in South Sumatera, the Toba Festival in North Sumatera, the Borobudur Festival in Central Java, the Kite Festival in West Java, and still others – too many to be mentioned one-by-one.
Other types of events are the many sports events. Each province may have an annual provincial sports week, during which competitions of all kinds take place amongst the http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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competitions and other sports competitions. There are also lively and popular soccer league competitions, including international exhibition games with European soccer teams.
Meetings, conferences, workshops, exhibitions, and trade fairs are also popular activities which generate domestic as well as international travels. Not only those events which are organized by professional organizers, but also smaller conferences and workshops on campuses all over the country have generated travel at different scales ranging from local to regional and international.
5.1.2 Domestic Tourism Profile and Development
1) Domestic Tourism Definitions and Measurements
Working Definitions
As a member of the UNWTO, Indonesia fundamentally adopts the recommended definitions released by the organization and adapts these to the national situation. Domestic tourism as defined by the UNWTO comprises the activities of resident visitors within the country of reference either as part of a domestic tourism trip or part of an outbound tourism trip. Thus it includes activities by foreign residents of the country (UN-UNWTO, 2010).
Indonesia has the specific term pariwisata nusantara which in fact extends beyond the travel activities of merely Indonesian residents in Indonesia, and, that actually may not be separated from the activities of Indonesians living in other countries during their visits home. For statistical purposes, domestic tourists used to be interchangeably translated into wisatawan dalam negeri or wisatawan nusantara, which mean Indonesian tourists in Indonesia. In fact the word nusantara has a deeper meaning; it not only denotes the national boundaries, but also denotes the imbedded culture as well as civilization of the whole archipelago and its uniting waters. The word wawasan nusantara is a concept of the archipelago which is united (not separated) by the waters between islands. It needs to be noted that the term pariwisata and wisatawan nusantara, both were created to underscore the importance of culture and civilization as well as unification – not only arrivals or trips – where tourism is to be developed.
In the regional Tourism Satellite Account, sometimes domestic tourists are differentiated between those who are travelling intra-regionally (within the provincial boundary of the place
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The working definition of “domestic tourist” has evolved. The first survey on Indonesian travel was undertaken in 1981, using the term wisatawan dalam negeri (in-country tourists) defined as Indonesian citizens who were travelling, leaving home for a certain period of time to visit tourism attractions, within the geographical boundary of the country, individually as well as in groups, motivated by different reasons, except for permanent work. The travelling population was defined as those who were leaving their homes, with or without staying overnight, for tourism purposes as well as other reasons (Biro Pusat Statistik 1982).
The latest definition has put ‘distance travelled’ into the definition. The statistic differentiates the numbers of travelling population and the numbers of trips made by the travelling population, wherein a traveller may make one or more trips during the time reference. The numbers of domestic trips are all voluntary trips made by the travellers (Indonesian) within the geographical boundary of the country for less than a six month(s) period, done individually and/or in groups, but not routine travel or travel for schooling or work (remunerated) in the place of destination, but to visit tourism attractions, with or without staying overnight in commercial accommodations, and the roundtrip distance travelled of not less than 100 km. This definition has been used since early 1992 and the term wisatawan nusantara to replace the term wisatawan dalam negeri.
Measurement by the National Statistical Board
1. The Household Survey – The number of the travelling population is obtained from a household (HH) survey, which has been improved from time-to-time in terms of the questions included in the survey as well as the sample size and methods of sampling. The survey of the travelling population is undertaken as an integral part of the national socio-economic survey (SUSENAS). The survey is at present undertaken annually. The sample frame of the survey uses the district/municipality sample frame which is completed with information on the travelling households. A travelling household (HH) is a HH where at least one member of the HH undertook travel to a commercial object/attraction, staying in a commercial accommodation or travelling at least 100 km for round trip, excluding commuters. A number of districts/municipalities were chosen using a proportional size probability (number of travelling HH’s). All census blocks with travelling HH’s were chosen as census block samples and all travelling HH’s were chosen as selected HH samples.
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accommodation like the informal sectors of home stays, guest houses, boarding houses or family houses used by travellers/tourists that may not report regularly or not report at all.
2) The Importance of Domestic Tourism
Until the 1970s travel and tourism for Indonesians was limited to the privileged few. Domestic tourism which previously was only enjoyed by the wealthy has become more affordable due to advancements in transportation technology and improved income. Besides this, new tourism infrastructure and improved accessibility has made remote places easier to visit.
The growth of domestic tourism also cannot be separated from the growth of the children and youth which comprises about 49.21% of the total population; improved positions of women, and increasing information flows. Previous studies revealed that most domestic tourism was still in the stage of simply seeking relaxation, leaving daily routines and environments. Tourism as a lifestyle in itself has characterized a certain segment of the population. Youth, women, older people, as well as families with children and to a lesser extent disabled people are travelling. Special market niches are also appearing: adventure tourism, culinary tourism, hard core nature tourism in addition to widely popular recreational and shopping tourisms.
Indonesia is an immense country – united by the motto Bhinneka Tunggal Ika which means Unity in Diversity. History has proved that uniting such a heterogeneous population is not easy nor simple. Misunderstandings, different value systems and traditional habits, development gaps and many other factors – sometimes combined with political interests have created internal conflicts from time-to-time. Domestic tourism is expected to play a role in improving understanding among different cultural groups, develop friendship and peace as a means toward unity. (Domestic) tourism is also considered part of the educational and cultural processes in developing one’s personality and strengthening Indonesian unity. It is for these reasons that the terms pariwisata and wisatawan nusantara replaced their literal translations of domestic tourism and domestic tourists as explained before. The importance of domestic tourism is also considered from economic points of view, not only is the magnitude of total expenditure large, but it also intensively touches the many informal sectors and the small and medium enterprises. The economic impact to local communities and otherwise poor people is more significant than international tourist expenditures. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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3) The Travelling Population
As earlier mentioned, the first survey of domestic travellers was taken in 1981 and since then it is in the public interest to have information on domestic travel and trips made by the population. Within the 30 year period (1981-2011) the numbers have increased at an accelerating pace from a rough estimate of about 44 million(s) into a magnitude of about three-fold. The numbers of trips made accelerated at an even greater pace from about 51 million to about five-fold (Biro Pusat Statistik 1982; Kementerian Pariwisata dan Ekonomi Kreatif 2012). This means that the average numbers of trips made by the travelling population also increased.
With a total population of over 237 millions in 2010, the total travelling population amounted to over 122 million or 51.5% of the total population. The numbers of trips made by the travelling population in 2010 was 234,377,133 trips. Compared to the respective figure in the previous year (2009) the numbers of travelling population increased by 1.97%, and the numbers of trips was growing faster at 2.02%. This means that not only were more people travelling, but also, on average, each of them was making more trips.
Figure 5.4 Growth of the travelling population and trips made, 2001-2010
Source: Ministry of Culture and Tourism 2010; Centre for Data Management and Network System 2011.
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also noted that 68.63% of classified hotel guests were Indonesian. Only in Bali did international guests in classified hotels out-number Indonesian guests (Badan Pusat Statistik 2009).
It is interesting to compare the above statistics with the results of the household survey held in 2011. Among the travelling population, 31.67% did not use accommodation facilities and 54.87% stayed with friends or relatives, only 9.25% stayed in hotels. Significant changes have occurred since that first survey in 1981 was undertaken which revealed that 48.3% of the travelling population did not stay in accommodation facilities, and only 2.7% stayed in hotels. What remains common until today is staying with friends and relatives, but the proportion has increased from 39.44% in 1981 to over 54.87% in 2011 (Badan Pusat Statisik 2012).
4) Domestic Tourism Distribution
Statistics obtained from the HH surveys, specifically designed to identify the patterns of movement of the travelling population, show that domestic tourism is still concentrated on the island of Java and to lesser extents in some provinces, notably Sumatera (North and West Sumatera), Sulawesi (South and North Sulawesi) and Bali. All these provinces, except Banten in the most western part of Java, are the 10 largest earners of domestic tourist expenditures. Those same provinces are also the largest spenders as indicated in the following figure.
Figure 5.5 Ten provinces as large spenders and earners http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Source: Centre for Data Management and Network System 2011
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Among the ten provinces, Jakarta and West Java are provinces with the most surplus in value (IDR); in terms of percentage, the Yogyakarta surplus is highest – with 313% receipts compared to expenditures – followed by Bali with 200% receipts over expenditures. West Sumatera, Central Java and North Sulawesi are provinces with deficits from domestic tourism expenditures. The five provinces in Java have enjoyed around two-thirds of all “domestic tourism” expenditures in the country (Pusat Pengelolaan Data dan Sistem Jaringan 2011). The figure above also indicates the magnitude of deficit from other provinces in “domestic tourism”. The deficit of “other provinces” may mean that domestic tourists originating from other provinces spend much more in the popular destinations in the ten provinces (especially Java) than what they receive from hosting domestic tourists from the other ten provinces. In other words - there are more things to buy or consume in those ten provinces than in the others. Another characteristic of domestic travel remains the dominance of intra-regional (provincial) travel, making provinces with more population also more frequently visited. The distance travelled also indicates the dominance of intra- provincial travel, and it may then mean that the large numbers of travellers in the most populated provinces spend their money within their own home provinces.
5) Economic Contribution and Job Creation
The economic contribution of domestic tourism has also continued to improve. In the year 2001 the contribution was some IDR 58.71 trillions and within the decade reached IDR 150.41 trillions, an increase of 156%. The year of 2003-2006 was a period with only a slight increase in domestic tourist expenditure, while for all other years the increases were double digit. The number of the travelling population as well as number of trips in fact did not increase sharply, but the average expenditure increased due to improved income of the travellers (as indicated by growth of per capita income of the population) especially during the last five years (Pusat Pengelolaan Data dan Sistem Jaringan 2011).
Figure 5.6 Growth of the expenditure of domestic travellers, 2001-2010 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Source: Ministry of Culture and Tourism 2010; Centre for Data Management and Network System 2011
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The TSA 2010 revealed that the impact of “domestic tourists” expenditure on labour absorption was 3,784 million people or slightly above half of the total labour absorption by tourism, as compared to 1,967 million (26.45%) created by international tourists expenditure. Income received from “domestic tourists” expenditure amounted to 60% of the total income from tourist expenditure (Pusat Pengelolaan Data dan Sistem Jaringan 2011).
6) Travel Patterns of Domestic Tourism
The entire market of domestic tourism in Indonesia is huge, with sophisticated segmentations. Statistics developed through the compilation of data from the travel household survey – for technical reasons – may not cover the top market segment, as access to these respondents is difficult. This top market (economically) visits popular destinations equipped with international standard facilities, looks for prime amenities and are not price sensitive. They may be travelling with families or friends and relatives. These are people who have travelled abroad and tourism has been part of their lifestyle including the need for classy destinations. In terms of numbers, this segment is not large, but their activities and expenditures levels are high. They are those travellers who consume travel services for air tickets, accommodations and special packages in addition to the growing middle class travellers who mostly arrange their own travel.
The study on the Domestic Tourism Master Plan prepared in 2003 put youth tourism as a specific market beside those of young executives, the elderly, the disabled, pilgrimage- makers and the most popular travel group of family. On the other hand another study undertaken specifically for Bali in 2003, introduced four different segmentations: by type of group (family and non-family); by age (13-18; 19-25; 26 - 45; >55), by time of visit (peak season and low season travellers), and geographical segmentation (by provinces of origin) (Kementerian Kebudayaan dan Pariwisata 2003; Pusat Penelitian dan Pengembangan Kepariwisataan 2003).
Some of the common and specific characteristics revealed by the studies are as follows:
Table 5.1 Characteristic of some selected variables of domestic tourism Variable Common characteristic Specific characteristic
Source of information Words of mouth Learned at school Printed material Purpose of travel Vacation, recreation Religious, pilgrimage Visit friends and relatives http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Variable Common characteristic Specific characteristic
Stimulating factor Eager to see what has not been - seen Constraining factor Safety and security - Attraction Nature, culture Shopping Recreational theme park Mode of transport Private cars Airplane (depending on distance) Public transport (bus) Rented cars Travel companion Family members friends - Food Rumah makan (non- classified Restaurant restaurant) Self-prepared Choice of accommodation Location Available facilities Value for money Staying with family Travel services Packages Information Public transportation Hotel reservation Ticketing Tourist buses rental Frequency 2-3 times/year >3 Timing School holiday Idul Fitri (Moslem New Year) Week ends Annual leave Expenditure (2003) (IDR) 100,000 - 500,000 1,000,000 – 2,500,500 <100,000 Source: Kementerian Kebudayaan dan Pariwisata 2003a
An earlier study on the travel patterns of domestic tourists in seven provinces (covering Java, Bali and Nusa Tenggara) was undertaken in 1993. This study was done when international tourist arrivals were growing steadily. Supported by strong political will, there was only a fledgling awareness to the potential of domestic tourism in Indonesia. The study revealed the potential of youth tourism was travellers who while travelling were already planning their next trips three to six months hence. It also proved that the potential for domestic travel was not limited to higher income groups, but the demand for travel was also appearing at the lower ends. With a low capacity to spend, the youth market characterized the majority of travel, indicated by intra-provincial travel and their not staying in commercial accommodations. When asked about their wish to travel were ‘money not a constraint’, most respondents said they were eager to travel overseas to other Asian countries, rather than to the other parts of Indonesia as a result of information availability. In making decisions on travelling, external factors played an important role: the destination chosen might have been determined by their school or under the influence of friends and relatives rather than the result of marketing efforts at the time (Direktorat Jenderal Pariwisata and
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Besides this, the study also revealed that behaviours at the destination were influenced by the design and availability of physical facilities/tools (people made orderly queues in places
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where there were physical markers for queuing); in clean places their behaviour was better than in places where cleanliness was lacking. The study suggests three possible activity points for future research: cross-subsidy schemes for domestic tourism, tourist education about appropriate behaviour, and policy on information availability and dissemination (Direktorat Jenderal Pariwisata and Lembaga Penelitian ITB 1993).
7) Marketing Domestic Tourism
In line with the growth of domestic tourism, marketing for domestic tourism has also moved forward. The government has used all possible means to promote domestic tourism, encouraging people to visit places of interest, popularizing unique attractions located in different regions, by supporting the media and the travel industries.
With or without marketing, some people believe that the domestic market will grow, but quantitative growth alone is not enough, there are certain aspects that need to be promoted to influence travel patterns as well as to achieve the other goals of pariwisata nusantara as mentioned earlier.
Television programmes have allocated special times for introducing different regions of the country, revealing the uniqueness of places that were heretofore unknown and also encouraging people to value and save natural and cultural heritage, reminding visitors to explore local food specialties as well. A leading national newspaper undertook thematic expeditions (like “Ring of Fire” and river expeditions) then published articles in media to stimulate people’s curiosity and eagerness to travel to the related destinations.
In addition to student groups in universities and high schools which arrange travel according the group’s academic goals, there are also many groups with special interests that stimulate travel through their associations like the associations of antique car collectors/owners, the association for motorcyclists, heritage lovers, associations for trekkers, mountain climbers and other nature lovers as well as different kind of associations related to jobs/professions. Not less important is another type of association: the associations for the elderly which are under the auspices of the provincial governments.
The central government has developed a special site for domestic tourism on its official website, which is improved and updated continuously. They also offer prizes for quizzes that encourage netters to open the website from time-to-time. All provincial governments also maintain their own websites for describing attractions in their respective regions; in http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
The tourism industries have other tactics in promoting domestic travel, such as opening stands in shopping malls to attract bookings. National airlines have been improving their
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services and opening new connections, and most accept internet bookings. They also offer special promotional rates during certain times of the year.
Some operators promote their products through the internet to attract special markets, but the most effective promotion for certain segments is through social media, justified by the studies that reveal the fact that the word-of-mouth is still the reason most mentioned by respondents in deciding where to go or even whether to go or not.
There is also a trend in using a local language or a dialect of the past for special branding such as Poelang Kampoeng that means ‘back to village where we originated’, or Tempo Doeloe which means “the olden days” to indicate that a cuisine is prepared according to traditional recipes; it may even denote that food is free of chemical ingredients.
Cooperation amongst different stakeholders has been established, as many banks also offer their card holders special travel privileges and specific packages designed together with partner travel industries.
5.1.3 Case Study: The Potential of Domestic Tourism in Bali and Bandung
The Potential for Domestic Tourism in Indonesia
The potential for domestic tourism in Indonesia has been evident since the government first released statistics on the travelling population in 1982. It was estimated from the household survey that there were 44,136,000 travelling population in 1981. The number of trips was estimated to be 51,578,000 trips (Biro Pusat Statistik 1982). At that time the number of international arrivals was still far below a million arrivals (561,000). Another survey was done in 1984, and a significant increase was shown by the estimated numbers of travelling population to some 57,980,000 people or a growth of 31.4% within three years. The numbers of trips increased to 72,296,000 or 22.7% for the same period.
In general the survey was not a regular annual undertaking, but depended on the priority for surveys in the office for statistics. It was done several times in 1990’s. The latest survey in 2010 estimated that the total number of travelling population was 129,312,000 people making 234,377,000 trips (Kementerian Pariwisata dan Ekonomi Kreatif 2012). This means that within the past 27 years (compared with the 1984 figure) the travelling population http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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The average expenditure of domestic tourists is far lower than that of international tourists; even so the huge total expenditure of domestic tourists has exceeded the value of international tourists’ total expenditure. In 2010 the expenditure of the domestic tourists was IDR 150,414.13 billion, while in the same year it was noted that international tourists spent as much as a value equal to IDR 68,632.62 billion (Kementerian Pariwisata dan Ekonomi Kreatif 2012). Not only did domestic tourists spend more than 200% compared to international tourists, another observation proved that domestic tourists tended to spend their money at small and medium enterprises and in informal sectors, meaning that the distribution of income from tourism created by domestic tourists was wider and reached deeper down into grass root levels. This is important in improving a local community’s welfare, and in some cases helps in eradicating poverty in the destination and its vicinity.
With the growth of the middle class, domestic tourism will grow even faster in the coming years. Children and youth which comprise 49.21% of the growing population, will be the country’s strongest segment in terms of its eagerness to travel. Their better access to information through social media as well as other media, will strongly encourage them to travel. The economic shift to non-primary sectors that encourage increased urbanization and improvement of welfare will accelerate demand for recreation and tourism of many different kinds. The working population, especially those in trades and services are the most mobile according to a survey recently undertaken (2011), while travelling for professional and work purposes, people also need recreation during their leisure times in the places visited. With improved life expectancy rates, health conditions, changing attitudes and patterns of activities, the elderly is another segment that needs to be considered.
The Case of Bali
The Impact and follow up of the ‘Bali Tragedy’
Bali, Indonesia’s tourism icon, and internationally popular destination, experienced a tragedy in 2002 caused by terrorist bombings in Kuta, one of the most visited districts of the island. The tragedy had severe impacts on tourism in Bali, and on Bali’s supply regions. Within days the island was “empty”, international tourists rushed back home or flew to other places as soon as they could. The tourism industry experienced its lowest level of business ever recorded. Not only accommodations of all kinds were empty but also other places of interest - a dozen to over a hundred kilometres away from Kuta were also impacted. The tragedy reduced not only tourism but also trade in Bali, resulting in decreased demand for
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manage the situation. On the other hand travel bans and advisories from countries that were traditional sources of visitors issued travel warnings to their respective citizens not to visit Indonesia (Bali). At the same time Bali was becoming more popular with international aid and assistance flowing into it for among things, the development of an international standard hospital in Sanglah–Denpasar.
Most importantly is that the tragedy taught Bali some valuable lessons. The Governor admitted in a speech in front of an international audience that: “we must have done something wrong; God has punished us”. His humble expression was very effective for the religiously observant Bali community, public as well as private, encouraging introspection and making corrections while looking ahead.
The government, central as well as local, hand-in-hand with the private sector boosted promotional efforts to get the markets back to normal. Many lessons learned during the recovery and rehabilitation periods went beyond terrorism mitigation. Marketing efforts as well as religious “cleansing” rituals were both intensively undertaken in this period.
The tourism industry, especially hotels, lowered prices so much that smaller hotels were in a more difficult situation when the rate for five star hotels were nearly as low as for two star hotels under normal conditions. Budget hotels were not able to lower their rates as much, and domestic tourists flowed to the higher category accommodations. Not only in Bali, but also in other destinations, some hotels applied special rates for domestic tourists/Indonesian citizens denominated not in US$ but in IDR.
Travel operators tried to bridge hotel industry and airlines to create budget packages attracting domestic as well as international tourists from neighbouring countries. One important impact was the decision to revisit the Bali Master Plan. The increasing awareness that Bali needs to conserve its agricultural lands as the heart of its culture, and to maintain traditional rural landscapes which are attractive to tourists as well. A new master plan was then drafted, whereby dependency on tourism only is to be avoided.
The Study on the Potential of Domestic Tourism for Bali
Besides all these business-related efforts, the central government undertook a study starting in the middle of 2003 on the potential of domestic tourism for Bali. The aim of the study to be related to the policy on tourism development in Bali, was to identify the characteristics of domestic tourism, covering the socio-economic and demographic http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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A sample of 1,391 respondents was divided into three groups consisting of accommodation/hotel guests, visitors to tourist attractions in different districts, and the passengers in gateways (airports, seaports). Interviews were also done with tourism officials at provincial and district/municipality levels, business association representatives and other resource persons.
In 2003, international tourists to Indonesia were at its lowest level since the 1997’s peak and the decline caused by the 1998 national crises. It was reported to be only 4,467,021 arrivals (compared to 5.7 million in 1997 and 5 million in 2002 which was achieved before the bombing in October that year). Nationally, domestic tourist numbers were reported to be 110,030,000 people making 207,119,000 trips. Despite the increasing numbers of the travelling population, the numbers of trips made declined in both 2004 and 2005.
There was no report on the numbers of domestic tourists to Bali at the time, due to technical reasons, but the local government recorded the numbers of people visiting popular tourists attractions. During peak/holiday season in 2001, it was reported that there were a total 2,385 million domestic visitors visiting different places in Bali. There were possibilities of double counting that one person may have visited more than one place, but at least it showed that a significant number of domestic tourists visited international- oriented Bali. At that time, prominent tourism industry professionals in Bali had not seriously considered domestic tourists a potential target market. This was why the government intervened and insisted that the industry reposition their orientation during the hard recovery times. Lowering prices did not work in making the international market return to normal in 2003, but it did attract a lot of domestic tourists. In fact after the national crisis in 1998, when the exchange rate of Indonesian currency was extremely weak, there was a potential market shift from those who usually took outbound holidays to go to Bali and other domestic destinations instead.
Characteristics of Domestic Tourism in Bali
Characteristics of domestic tourists visiting Bali revealed from the survey were: 1. Most arrivals from Java: East Java, Central Java and Jakarta were significant provinces of origin of the respondents. 2. The dominant segments were young adults and youth, most of them coming from Jakarta and East Java; married; private company officials and students, with university graduates and high school education attainment; monthly spending was between IDR 500,000-2,000,000 out of IDR 1,000,000-3,000,000 incomes. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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whether food was ‘halal’ (that is, prepared within Islamic code). Spending for the trip varied from < IDR 500,000 – 1,000,000. Most stayed in non-classified hotels, and to a lesser extent also in classified hotels; most came with no advanced booking, but some booked by phone, looking for strategic locations. A significant proportion ate with families/friends and their budget for food was IDR 5,000 – 25,000 for each meal. Preferred souvenir shopping items were textile goods. 4. Those originating from Jakarta came by air, while for all the others, they mostly came by private cars and rented land transportation. 5. Domestic tourists considered Bali good in trader services, security, hospitality and environmental conditions. On the other hand it was considered poor in value for money, cleanliness on beaches and public facilities, health services, ease in getting information, eating places and quality of transportation infrastructure. 6. Almost all came for holiday and recreation; a significant percentage from Jakarta combined their visits with a business or official trip. 7. The average length of stay was four to seven days; domestic tourists visited Bali mostly during holiday time, but there were some travelling during other times of the year. 8. Travelling with families was dominant; with friends was significant for those coming from Central Java. 9. Most of all segments got travel information from friends and relatives; almost 25% from brochures; and about 10% from the internet. 10. Only 17.8% of respondents had their travel arranged by a travel operator (mostly those from Central Java); others made arrangements by themselves, or through families and/or friends. This portion was maybe first timers, the proportion of which was 41.1%.
Issues of Domestic Tourism Development in Bali
The important issues identified from the analyses of the data collected are: 1. Domestic tourism has a significant economic potential and it may be synergized with international tourism, especially if it can be used to fill capacity during low international tourist seasons. 2. Domestic tourists have different characteristics from international visitors and so may require special promotional strategies and visitor management efforts during their visits. Service standards may also require different strategies: – Data collection and documentation systems, as policy and decision supports, are lacking; http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Stakeholder Concerns
The Bali tourism industry and government used to be very international-oriented; domestic tourism grew by itself because of popularity and word-of-mouth of friends and relatives. During the recovery period of the tragedy, the Bali Government turned its overseas promotional programme into promotions to the domestic market. They participated in national trade shows undertaken by the central government, also organizing their own events, exhibitions, and festivals. The provincial and local governments made brochures available in the Indonesian language. Promotions for domestic tourists were programmed by cooperating with media: national television broadcasting, tabloids and newspapers. Provincial and local governments also developed their websites and promoted electronically to the domestic market. While doing all this, they also worked together with the industry-- especially the airlines and accommodation sectors to offer special prices;
Respondents from the industry as well as the community stated that it is more difficult to deal with the domestic market. The issues raised by the tourism industries on their domestic customers among others are last minute cancellations, changing pre-designed packages, bargaining, demanding, complaining and sometimes insistence.
Knowing that they cannot just rely on government initiatives, tourism industries have been proactive in taking some initiatives, as directly visiting institutions or offices to offer their packages, creating new packages, including budget package alternatives. Suggestions were made to combine packages with entertainment; education of domestic tourists to appreciate nature and culture; and information about tourism resources in general; improve infrastructure, security, and develop tourism to support the community’s economy.
Lesson Learned from Bali22
The study indicates some recommended strategies to be undertaken: 1. Survey and research to be regularly undertaken to create a data base needed for continuous product development. Information needs to be easily accessible to stakeholders; 2. improve knowledge and professionalism of the related parties in the development of domestic tourism, to maintain sustainability, create a broad variation of products catering to different segments with different characteristics and demands; 3. promote awareness amongst all stakeholders on the potential of domestic tourism (justified by research results) and foster commitments and participation of http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
22 Source: (rephrased from a study on the domestic tourism potential, a case of Bali (2003)
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What is most important from the tragedy is awareness of the fragility of tourism and changed perceptions. The tragedy taught a lesson that being too dependent on tourism is risky. For the first time in its history Bali tourism was faced with the fact of how fragile the sector is from externalities never anticipated nor imagined. When even the Gulf Wars which impacted other regions of the world, did not have any impact on Bali, the tourism industry in Bali was very confident of their strength. The confidence is outdated, diminished by the fact of how the tragedy severely impacted their livelihoods and other regions as well.
A recognized think tank was appointed to review what could be done to recover and assure a better Bali. Among the lessons was the consensus on the importance of having a more diverse economy like before the tourism boom. Agriculture is not less important than tourism and should not be sidelined. The Bali Regional Plan was reviewed for long term development planning and prepared based on this new vision.
Other questions besides how to recover quickly also arose: what kinds of tourism are best for Bali? Are there natural limits to tourism development? The team also surfaced awareness of the difference between tourism IN Bali and tourism FOR Bali, which has become a national concern when promoting community-based tourism against capital intensive developments of luxurious resorts which often marginalize the local community.
In short, it is a lesson for all stakeholders that our pride in Bali should not be based on Bali’s attractiveness for international investors, traders and tourists, and a crowded airport, but on Bali’s ability to recover quickly. The facts of how the community contributed in managing a critical situation, has strengthened the belief of the community’s strategic roles and their very right to be involved in the many aspects of tourism undertakings: policy formulations, planning and other processes. Community-based tourism and tourism based community development has become strengthened as a new policy dimension at the national level. Safety and security are not only important but are the very pre-requisite for tourism to exist. After the Bali tragedy the government, supported by the legislature allocated appropriate budgets for safety and security as well as for disaster mitigation.
The harmonious relationships amongst the central, provincial and local governments, the private sectors, and community leaders have supported a quick recovery for the island. The successful efforts of recovery may also prove that if there is the will, there is a way to synergize. The impact of the tragedy has been well-managed and become a best practice for crises management in the tourism industry.
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The Case of Bandung
Background
Bandung, the capital city of West Java province, was planned to be the new capital of the Dutch East Indies in the early twentieth century. Even while World War II put an end to that bid, and at the end, Batavia (Jakarta) remained the capital city of The East Indies, Bandung in anticipation of the move was equipped with many urban functions and facilities, including defence, education, telecommunication, hospitals, schools, residential districts as well as recreation, luxury shopping and fine dining.
Bandung, located in a plateau surrounded by the beautiful topography of highland tea estates, became the destination for the tea planters who “went down” during their weekends to meet friends and visitors who “went up” from the capital at Batavia. The northern part of the city, known as the Dutch quarter, was well planned with many gardens and parks, villas on large lots, shopping streets and social clubs.
Bandung was also a market place that attracted international trade. International hotels were built and a facility for an annual international trade fair was also made. The Dutch Government then promoted the city as an international destination with mostly European visitors spending their holidays in the East Indies, including those who wanted to avoid winter in their home countries. In short Bandung was an international urban destination, as well as destination for domestic visitors from the capital of Batavia who were looking for the refreshment of the cooler upland weather and planters looking for urban amenities to spend their weekends, enjoy shopping, fine dining and socializing with friends and business acquaintances.
Turning Point
During the early independence days (1955), Bandung was chosen to host the Asia Africa Conference, which benchmarked Indonesia's role in international geopolitics. Recreational tourism decreased in Bandung, international hotels were nationalized and social facilities were busy servicing new domestic markets. The general condition of the country was still apprehensive, and tourism was a true luxury that only very few rich Indonesians could afford. There was a long hiatus in Bandung tourism.
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The Growth of Domestic Tourism in Bandung
As the provincial capital and with the many functions that Bandung had enjoyed in the past, Bandung became a destination for many kinds of travellers from different parts of the province, from Jakarta, and to a lesser extent, also from other provinces. The market for business travel, visiting friends and relatives, the health and education related markets were growing as were the many other capital cities in the country. People from the surrounding areas also visited the old city centre, though the once popular and prestigious Braga shopping street was declining, replaced by new style, more affordable shopping malls located in the vicinity of the city square. Most visitors did not stay overnight. Another segment was those people visiting the northern parts to enjoy the city’s ambiance as well as recreation and entertainment facilities. A recreation park equipped with the once largest swimming pool in the country was built in the north in the 60s. Bandung popular for its cool weather and amenities, decorated with many fine art deco buildings attracted only a few scholars or Dutch tourists coming for nostalgic tours.
The significant growth of urban tourism in Bandung dates back to the 1980’s with the development of an area in the southern part of Bandung as a major shopping street of “home industries” – the Cibaduyut area, specifically selling foot wear and other leather goods. Most visitors came from the small towns in the surrounding areas within the province. In the early 1990’s another shopping street took over a former residential district and became popular as “jeans street,” outlets of the many garment industries as a forward linkage to the growing textile industry, Bandung's manufacturing mainstay. Land prices along the street skyrocketed and the commercial activities turned the street into a shopping and eating destination with visitors coming from even the outer islands. The place then attracted hotels and banks, neighbouring not only with the new shops, but also with the schools and hospital which were formerly located in the once relatively quiet atmosphere outside from the old city centre.
By the end of the decade, a new trend emerged: small sized shops, making use of the old Dutch villas located in the most prestigious residential quarters in Bandung, not far from a regional public hospital, and others not far from the famous 1920’s Gedung Sate, a complex functioning as the office of the Governor. These “factory outlet stores” (FOs) had a strong attraction for people from Jakarta, and stimulated the growth of eating places as well as bakeries and snack products of 'oleh-oleh' – souvenirs for friends and relatives brought back from a trip which is part of the travel culture of Indonesians. Within a few years “outlet fever” spread to residential streets full of reused heritage buildings in the once most prestigious areas of the city now changed into shopping streets. Even city planners http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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dramatically in the latest decade. In 2003 the number of hotel guests In Bandung was increased by 76.3% from 946,344 people to 1,688,724 people, among whom 94-95% were Indonesians (Jumlah Kunjungan Tamu Hotel Kota Bandung 2001-2011). New accommodations are also adding to the city’s building density. Hotels, classified as well as non-classified have grown steadily at a rate above 10% per annum for classified hotels and close to 8% for non-classified hotels, among which four star hotels are the fastest growing segment (Adriani 2012). Permits were given to change the residential function in strategic locations in the north into commercial outlet stores, restaurants and hotels. Planners needed to modify the city development plan, with many new areas designated in the land use plan as areas for “services”. The City Plan which was legalized as a Local Government Regulation, at this point has become “outdated”. A 30% deviation is noted where development deviated from the land use plan – hotels, restaurants and outlet stores all justified as services (Adriani 2012).
Heavy traffic entering Bandung during weekends has resulted in long queues at all city entrances, especially from the west and the north, and has stimulated the government to construct a toll road connecting Jakarta-Bandung, which started operations in 2005. The next year (2006) was a low occupancy year for hotels, because of the shorter time distance changing the behaviour of Jakarta people who chose to return home rather than spending for accommodation. But this fact only lasted a short while, and the following year hotels started to enjoy increasing occupancy (Adriani 2012). Bandung has become the destination for tourists as well as day visitors supported by the mushrooming low-cost shuttle services of minibuses connecting the shopping streets of Bandung with the many different quarters in Jakarta. Very recent news reports that some 200,000 cars entered Bandung during a long weekend in March 2012. Traffic queues have become common in front of and behind toll gates and have been blamed for creating an urban heat island with high air pollution rates.
Hospitals and education institutions which once enjoyed quiet environments have to adapt themselves to the new hectic situation. A positive move has been taken however by the relocation of some gas stations creating new parks, adding to the limited open spaces in crowded areas. Traffic jams still worsen from time-to-time making hospitals difficult to reach during weekends.
Recent research undertaken by Adriani (2012), indicate that tourists and city residents to a certain extent have the same expectations about primary and secondary elements of urban tourism. Shopping facilities are preferred by both tourists and residents. In addition to shopping facilities tourists mentioned other preferences: outlet stores and food services, while residents prefer to have recreational facilities. Secondary elements like intra-urban http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Bandung is still in the development phase of Butler’s lifecycle theory with positive impacts on stimulating economic growth, recreation and employment opportunity for the residents and increased land prices. The negative impacts felt by residents and visitors are traffic congestion, air and noise pollution, urban landscape chaos. Even while recreation facilities have increased, residents’ access is limited since they have to share these with tourists.
There are two different groups of residents identified through a cluster analyses process; the ‘sentimental positive’ who feel the direct and indirect impacts, and choose to leave the city rather than stay and deal with heavy traffic; and the “appreciative neutral” who do not feel the direct impacts but the agree that tourism has affected the urban experience. These have a higher appreciation of city tourism products and appreciate the unique recreational facilities in Bandung not found in other cities. It is also interesting to learn that in fact Bandung residents prefer to enjoy recreation during weekends, caused by the increasing quality of the facilities at less expense for them. They feel the need for creative, educative and environment-friendly recreation on one hand and wish to avoid mass visitation with its high risk for safety and security and costly recreation on the other (Adriani, 2012).
Lessons Learned
Tourism in Bandung has been able to prove its worth as the main source of income for the local government. With a magnitude of over 40% of local taxes coming from tourism, the municipality is very keen to further develop tourism, while spectators and observers have reminded them about the carrying capacity of the urban space, that there are limits to development, and, of utmost importance are the rights and well-being of Bandung residents. The hospitals and the schools which were properly located when they were first constructed have developed in scales of operation, and the changes of the urban environment have made many sorts of disturbances, air and noise pollution among others, creating traffic congestion which produce further impacts to the proper functioning of the city.
To a certain extent the urban population and urban tourists have similar expectations of city amenities and attractions as well as supporting infrastructure, even while priorities are different. The fact that they have to share city facilities with crowds of tourists that have pushed them out at their expense (increased cost of living).Indeed that there are always uncertainties of the future, and not all can be anticipated. If the city government in the recent past had had the brave vision of making use of the potential of domestic tourism, and directed city development to outer areas with lower density of investment by providing http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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development plan and maintaining city heritage as original and as graceful as before, which is also a magnet for tourists. Above all the urge to demolish local heritage to accommodate new tourism functions may be less aggressive. Even though the municipal government has announced time limits for development permits in the sensitive areas, the “damage” has been done, creating a social cost that might otherwise have been avoided.
5.1.4 Conclusion and Recommendation
Domestic tourism has been placed in a strategic position, not only from economic points of view but as the means for cultural development, advancing civilization and unification of the nation as well as fostering love for the country, for which the government has chosen the specific term that embraces it all: pariwisata nusantara. Political will for developing domestic tourism started decades ago, but still needs more than will; political courage is needed to put domestic tourism at the forefront of Indonesia’s tourism development.
Tourism impact analyses (e.g. TSA) at the national as well as regional levels have revealed the impacts of domestic tourism compared to international tourism. For most regions, including Bali and the capital city of Jakarta which are the most internationalized, domestic tourism impacts are more significant and better distributed. However, distribution of domestic tourists from the population concentrations to the less- and least-populated regions still need to be supported by infrastructure development as well as improved transportation services and intensive promotion.
Potential destinations still need to be developed, not merely to respond to global market demands for certain tourism products, but also for demand that suits the accelerating domestic markets. Considering tourism as lifestyle, a sign of prestige, as well as a social behaviour, above all as part of human basic needs for leisure and recreation and escaping one’s usual environment, tourism needs to be ‘taught’ from early age, developed during youth, expanded while maturing and maintained during old age. Not only does the country need plans for tourism development, so do the provinces, municipalities and districts; and each individual needs also to plan his or her own ‘tourism’ activities.
The presence of mass tourism can be seen geographically as well as temporally. Cities are favoured destinations for their urban amenities and recreational parks; education institutions as well as shopping facilities attract visitors, local as well as those from outside regions. Other concentrations of tourists are beaches and pleasant places with comfortable climates:
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In terms of temporal concentrations, the extreme peak of the year, with unbelievable numbers of passengers using myriad means of transportation, public as well as private, occurs during the week before and after Idul Fitri. Nationally, the flow moves out from Java to the outer islands. Regionally, there is a massive flow from the bigger cities to smaller towns and villages. In Java the flow is from Jakarta and Bandung to the east; from Semarang to the south and from Surabaya to the west. These flows are not ‘tourism as usual’; they are a matter of mudik (“homecoming”) that also indicates the imbalanced development in the country, encouraging people to work outside their places of birth/original residence. This special kind of domestic tourism will grow, maybe even faster, if regional imbalances are not resolved. Another temporal concentration, which is less problematic, is the school holiday peak period which is more manageable.
For the tourism industries, catering to the demand for outbound tourism seems to be more advantageous at this time, and easier for two reasons. First because the demand of the outbound tourist is supported by the flow of endless information, and more importantly the product is tried and true; the local industry needs only to further promote and sell to those who are ready to consume for their social need and prestige. Secondly, a significant proportion of mass domestic tourists usually handles its own travel arrangements, using their own cars or government/company cars and may not stay in commercial accommodations. On the other hand for the upper market of domestic tourists, the tourism industry is required not only to promote and sell but also to create, innovate and continuously improve product developments to ensure that the quality of products is guaranteed. Product development has to be encouraged and highly supported to cater to the different market segments with their differing abilities and willingness to pay.
In giving domestic tourism high priority, as mentioned earlier political courage is needed to: 1. Foster policies on domestic tourism that may be discussed within different ministries, at least amongst the Ministry of Tourism and Creative Economy, Ministry of Forestry, Ministry of Education and Culture, Ministry of Youth and Sports and Ministry of Home Affairs. There is no reason for not prioritizing domestic tourism in the time to come, and each Ministry needs to play a synergized role in promoting, developing, managing as well as controlling; 2. Redistribute tourist flows: inter-regional flows from one province to another need to be boosted through the provision of easy and affordable access (rail, boat, bus); provision of youth accommodation (hostels, camping grounds, home stays). Student exchanges from one province to another – staying with families may also be an option. This is not a matter of providing infrastructure, but a national tourism system with a regional office in each province to facilitate the inter-regional flows that needs to be http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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infrastructure needs to be directed to places outside the present heavy concentrations (a supply-side approach) to encourage and stimulate growth in lesser visited provinces/regions; 3. Redistribute temporally by a new arrangement of school holidays. A zoning system can be applied, and school holidays managed so that each zone will have the same length of holidays but at different weeks of the season. By so doing, capacity will improve without additional facilities and infrastructure, and burdens in destinations as well as transportation network pressures will be minimized. Lessening the burden during the period of Idulfitri needs a cultural approach in addition to all efforts for reducing the imbalances of development. It is far more than a mere transportation/traffic problem.
At the operational level, the quality of domestic tourism needs to be improved, not only physically by development of facilities and infrastructure, but also its ‘quality of experience’ that needs to be improved. Both domestic tourists as well as domestic tourists’ providers for goods and services need to have beneficial experiences.
1. Public education about the important benefits of travel, visiting historic places or places with unique significance need to be on an agenda for promoting knowledge- based domestic tourism. Public education may also include the required ethics when travelling or visiting a place/community, care for the environment and heritage; 2. When dealing with destinations which are solely domestic or mixed with international tourists, carrying capacities need to be measured and visitor management strategies applied; 3. Newly planned destinations need more than just transportation and accommodation services, but also basic services: clean water, sanitation, and other public utilities. In addition, government initiatives or initiatives of supporting institutions need to be fostered. Programmes like the previous successful ones need to be developed more than just replicated/repeated: the kirab remaja (a specific programme for representatives chosen from the best high school students from regions all over the country, to travel from one province to another); the jelajah nusantara (a programme sponsored by a national media company travelling around the country and producing exposes); and the marine expedition tour (a tour of best students from all regions travelling together by ship (originally ships ‘borrowed’ under certain cooperation/agreements from the Navy); 4. In addition to what has been available, a guideline for expected domestic tourism needs to be prepared: for potential travellers, for service providers, especially those which are seasonal in nature. Media is expected to continue having special time or http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Last but not least: – data bases on domestic tourism need to be developed at all levels: districts, municipalities, provinces and at the national level, not only to inform tourists about where and when to go, but not less importantly for decision and policy support systems; and – a special division for domestic tourism needs to be established the level of which should not be lower than a Directorate General.
Acknowledgement
The author would like to extend a warm thank to Mr. Abdulkadir from the Ministry of Tourism and Creative Economy and his Staff Qomariana in providing recent data on domestic tourism, Mr. Adi Lumaksono from the Tourism Section of the Central Bureau of Statistic who has given the input on how the statistics have been collected, Asyifa for helping in data search from the internet and prepared tables, graphs, and maps for this paper. Thanks also go to Centre for Tourism Planning and Development, Institute of Technology Bandung for reports of their consultancy work, Jagaddhita who has generously provided me with space to work and internet connection, and last but not least to Rizki Handayani who has bridged me with UNWTO and Frances Affandy who kindly extended her comments and did the text editing.
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Bibliography
Adriani, Yani (2012), Perceptions and Preferences of Urban Residents as a Base for Urban Tourism Planning in Bandung (Thesis), Institute of Technology Bandung, Bandung, Indonesia. ‘Allocate Government Budget More for Infrastructure: Mass transportation should take priority’ (2012), Kompas Newspaper, 12 March 2012. Centre for Data Management and Network System (2011), National Tourism Satellite Account 2010, Ministry of Culture and Tourism Republic of Indonesia, Jakarta, Indonesia. Centre for Statistics and Information (2011), General Performance Indicators of Marine and Fisheries 2010, Ministry of Marine Affairs and Fisheries Republic of Indonesia, Jakarta, Indonesia. Centre for Tourism Research and Development (2003), The Potential of Domestic Market (Case Study: Bali), Executive Summary, Ministry of Culture and Tourism Republic of Indonesia and Tourism Research and Development Group Institute of Technology Bandung, Jakarta, Indonesia. Deputy for Marketing (2003), Development, Target and Marketing Strategy- Domestic Market in the Province of Bali, Ministry of Culture and Tourism Republic of Indonesia, Jakarta, Indonesia. Directorate General of Civil Aviation (2011), National Master Plan for Airport 2010-2030, Ministry of Transportation Republic of Indonesia, Jakarta, Indonesia. Directorate General of Marketing (2011), Annual Report 2010: the Growth of Domestic Tourist Travel, Ministry of Culture and Tourism Republic of Indonesia, Jakarta, Indonesia. Directorate General of Tourism and Research Institute-Institute of Technology Bandung (1993), Analyses of Domestic Tourists Behavior in Java, Bali and Nusa Tenggara, Jakarta, Indonesia. Ministry of Culture and Tourism (2003), Master Plan for Domestics Tourism, Executive Summary, Ministry of Culture and Tourism Republic of Indonesia and PT. LAPI Institute of Technology Bandung, Jakarta, Indonesia. Ministry of Culture and Tourism (2010), Strategic Plan of Ministry of Culture and Tourism 2010-2014, Ministry of Culture and Tourism Republic of Indonesia, Jakarta, Indonesia. Ministry of Tourism and Creative Economy (2012), Strategic Plan of Ministry of Tourism and Creative Economy 2012-2014, Ministry of Tourism and Creative Economy, Jakarta, Indonesia. Statistics Indonesia (1982), Tourist Travel Patterns 1981 (Travelling Population Survey), Statistics Indonesia, Jakarta. Statistics Indonesia (2002), Domestic Tourism Statistics 2001: National Socio-Economic Survey 2002 (Travel Module), Statistics Indonesia, Jakarta, Indonesia. Statistics Indonesia (2009), Statistics of Hotels and Other Accommodations Facilities 2009, Statistics Indonesia, Jakarta, Indonesia. Statistics Indonesia (2010), 2010 Population Census Result – Provincial Aggregate Data, Statistics Indonesia, Jakarta, Indonesia. Statistics Indonesia (2011), Statistical Yearbook of Indonesia 2011, Statistics Indonesia, Jakarta, Indonesia Statistics Indonesia (2011a), Population of Indonesia by Province 1971, 1980, 1990, 1995, 2000 and 2010 (Online), available: http://dds.bps.go.id/eng/ tab_sub/ view.php?tabel=1&daftar=1&id_subyek=12¬ab=1 (07-04-2012). Statistics Indonesia (2011b), Population by Age Group and Sex of Indonesia 2010 (Online), available: http://dds.bps.go.id/eng/aboutus.php?sp=1 (07-04-2012). Statistics Indonesia (2011c), Labor Force Situation in Indonesia August 2011, Statistics Indonesia, Jakarta, Indonesia. Statistics Indonesia (2012), Tourism Domestics Profiles 2011, Statistics Indonesia, Jakarta, Indonesia. The Number of Hotel Guests in Bandung City 2001-2011, Culture and Tourism Office of Bandung City, Bandung, http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Chapter 6 ______
Iran
6.1 Domestic Tourism in Iran By Dr Zahed Ghaderi
6.1.1 Introduction
Tourism is not a new phenomenon in Iran. Considerable evidences show that it can be traced back to ancient times, but its more organized and purposeful forms as an industry were shaped after establishing the Jalbe-Sayahan Bureau in the Ministry of Interior 75 years ago (Ghaderi, 2011; Tourist Consult, 1975). The aim of this organization, which later on merged as the Ministry of Tourism and Information, was to introduce Iran’s valuable ancient civilization to the world and to develop tourism for the benefit of the nation. Since then, constructive attempts have taken place to boost the tourism industry. In alignment with these efforts, many tourism accommodations in popular tourist destinations were established, mainly alongside the Caspian Sea coastal areas and other pleasant mountain destinations (Ghaderi, 2011).
Tourism, however, was briefly interrupted due to the Islamic Revolution and the unpredictable war with its neighbouring country, Iraq. During the war, not only did people stop travelling, but also many tourist establishments were devastated or converted to strongholds for military purposes. When tensions between the two countries ceased, an opportunity arose to rebuild the industry and numerous efforts have been made to the reconstruction of infrastructure damaged during the war.
The Tourism industry, however, has been rapidly developed in Iran since the past couple of decades. Many factors including socio-cultural and socio-economic improvements contributed to this development and provided the ground for people to travel to and within the country. Domestic tourism overtook international tourism due to regional political
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According to the data provided by the Iran Cultural Heritage, Handicrafts and Tourism Organization (ICHHTO), there were 3,121,283 international arrivals to Iran in 201023 of which approximately 20.14% of travellers arrived at their destination by air transport, while the remainder travelled by surface (79.26) – by road and rail or over water (0.60%). These statistics show a roughly 27% increase compared to the same period in the previous year (Bureau of Statistics, 2011).
Table 6.1 Number of international tourist arrivals to Iran Year Number of arrivals Change (%) 2000 1,341,762 1.6 2001 1,402,160 4.5 2002 1,585,000 13.0 2003 1,546,335 -2.4 2004 1,649,479 6.7 2005 1,600,000 -2.9 2006 1,816,905 13.5 re2007 2,171,699 16.3 2008 2,027,528 -7.1 2009 2,272,575 10.8 2010 3,121,283 27.2 Source: Bureau of Statistics, 2011
Academics and industry players, however, have always criticized the accuracy of these statistics. Critics say that available data comprises international travellers who come to Iran for different purposes other than tourism and thus such large numbers cannot figure in tourism statistics as their purpose of visit is not tourism activities. As reliable data is not available due to this fact (lack of differentiation of international tourists from travellers), ranking Iran among the world tourist destinations is somehow difficult due to the fact that no statistics were reported to the World Tourism Organization in 2009 and 2010 for making such comparisons.
Nonetheless, in terms of number of arrivals in 2010 based on the available figures, the country was placed behind 53 tourist destinations worldwide. This is, however, not a good record for Iran, in terms of the rich natural and cultural assets that the country possesses.
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6.1.2 Overall Country Profile
1) Structure and Policies
The current national tourism organization framework is an extensive body comprising three major specialized areas: the cultural heritage, handicrafts, and tourism. Several aims in line with the organization’s vision were developed such as: 1. Introduce the country’s valuable cultural and natural heritages to the world; 2. access the actual status of the country as a leading tourism destination in the world; 3. develop capacities and enhance capabilities of the country in cultural and natural heritage; and 4. strengthen the sense of national unity, responsibility and participation of all stakeholders in protecting natural and cultural resources (ICHHTO, 2012).
In order to achieve its objectives, an organizational framework is designed at national level and adopted to 30 provinces. The diagram in figure 6.1 depicts the organizational framework of ICHHTO.
Tourism assets
Iran is one of the leading countries rich in terms of natural and cultural assets for tourism purposes. Famous for its exotic nature, the country possesses diverse natural tourism attractions including 8,200 flora species, 1,683 fauna species (including 163 Mammals, 520 Birds, about 1,000 amphibious and reptilian animals). Noteworthy is a two-gram mammal (Soncus etruscus) in Golestan province in contrast to the 130-ton whale in the Persian Gulf both of which can be found simultaneously in different environments of the country (Jihad Water & Energy Company, 2010).
Diversity of ecosystems and natural sites including more than 2,400 km coastlines, many beautiful islands, more than 50 lakes, desert lands such as the Loot Desert and the Central Desert of Iran provide many rare and wonderful attractions. Alpine areas culminating in the Damavand summit (5,671 m altitude) and many other mountain and peaks over 4,000 meters in height, with their many climbing paths are listed amongst the internationally known trekking and mountain routs. In addition, more than 100 amazing caves, 100 mineral springs and spas can be included in this list.
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areas also feature in this list. About 13.86 million hectares of forest including 22 million hectares in the North of Iran called Hirkani forests, 6 million hectares in vegetative area of Zagros, 160,000 hectares in vegetative area of Arasbaran, 4.5 million hectares in vegetative area of Persian Gulf and Oman Sea must be added to the above categories. These diverse assets comprise ecotourism attractions of the country (Jihad Water & Energy Company, 2010). http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 6.1 ICHHTO organizational chart
President of organization
Secretariat of national assembly for Office of President tourism coordination
National committee of ecotourism
Dept. of coordination for provincial Office of cultural heritage guards affairs and inspection
Office of International Affairs Dept. of cultural affairs and PR
Office of statistics and information Department of security technology
Office of research, planning and Office of world heritage sites affairs evaluation
Deputy of mgmt. Deputy of Deputy of Deputy of cultural development, investment and Deputy of tourism Handicrafts heritage parliament and projects provincial affairs
Office of preservation Office of and restoration of Office of tourism development Office of Office of the program buildings, textures accommodation plans and commercial affairs and budget and historical and services facilities premises
Office of Office of tourism development, Registry department Office of tourism development, Dept. of HR promotion and for historical and pilot areas marketing and development production cultural monuments advertisement support
Dept. of museums, movable cultural, Dept. of financial affairs historical properties
Office of legal affairs
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(30 Offices in 30 Provinces) Parliamentary affairs
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In addition to natural attractions, the country also is rich in cultural and historical assets. According to Iran’s Tourism Development and Management Master Plan, more than 1.2 million cultural features such as monuments, museums, as well as intangible cultural features including festivals, cuisine, music, language, arts and craft, have been recorded throughout the country (Iran Touring and Tourism Organization, 2002). Tracing back its history to almost 10,000 years, the country is replete with historical monuments, archaeological sites and other cultural attractions. Of this rich heritage, 13 historical and archaeological sites and 9 intangible cultural elements have been inscribed by UNESCO to the world heritage list and many have been nominated for future inscription.
In terms of intangible cultural attractions, Iran has enormous diversity. Various ethnic groups such as the Kurds, Azari, Lurs, Balooch, Turkaman, and Arab, to mention a few, have enriched the country. Each ethnic group has its own culture, language, cuisine, traditional ceremonies, festivals, arts and crafts, costume, music, dance, etc. Therefore, there are many festivals, ceremonies and celebrations that are performed annually. This diversity has created an interesting cultural attraction for both domestic and international tourists.
The most famous events are: the Iranian New Year (Nowrooz), Agricultural Harvest celebrations (Grapes, Strawberry, Dates and Pomegranate harvests) national religious ceremonies such as Eid ul-Fitr (end of Ramazan fast), Eid Qorban (“The Festival of Sacrifice”), Nimeh abân (celebration for the twelfth and final Shi’a Imam), Ashurah and Tasoa (Shi’a Muslims observe the day in mourning for Imam Hussein and in remembrance of his martyrdom). In addition there are many local ceremonies such as Carpet washing in Ardehal Kashan, Pir-e-Shaliar wedding ceremony, Yalda Night: Shab-e Chelleh, Chaharshanbe Suri: Festival of Fire, Sepandarmazgan: Day of Love, Friendship and Earth in ancient Persian culture, Mehregan: Festival of Mehr, Sizdah Bedar: Persian Festival of “Joy and Solidarity”, Jashne Sade: A mid-winter feast to honour fire and to “defeat the forces of darkness, frost and cold”, are amongst many others.
Table 6.2 Iran’s intangible heritage lists inscribed by UNESCO No. Cultural elements Date of inscription 1 Naqqāli, Iranian dramatic story-telling 2011 2 Traditional skills of building and sailing Iranian Lenj boats in the Persian Gulf 2011 3 The music of the Bakhshis of Khorasan 2010 4 The Pahlevani and Zoorkhanei rituals 2010 5 The ritual dramatic art of Ta‘zīye 2010 6 Traditional skills of carpet weaving in Fars 2010 7 Traditional skills of carpet weaving in Kashan 2010 8 Nooruz (the New Year) 2009 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Table 6.3 Iran’s properties inscribed on UNESCO’s World Heritage List
No. Name of the site Location Date of inscription
1 Persepolis historical complex Marve Dasht, Fars 1979 2 Tchogha Zanbil, Susa, Khuzistan 1979 3 Meidan Emam, (Naqshe- Jahan) Esfahan 1979 4 The archaeological site of Takht-e Tekab, West Azar Baijan 2003 Soleyman 5 Arg-e- Bam and its Cultural Kerman province, Bam 2004 Landscape 6 Pasargad Fars province 2004 7 Soltaniyeh Zanjan province 2005 8 Bisotun inscriptions Kermanshah province 2006 9 Armenian Monastic Ensembles of North-west of Iran 2008 Iran 10 Shushtar, Historical Hydraulic Shushtar, Khuzistan province 2009 System 11 Sheikh Safi al-din Khānegāh and Ardabil 2010 Shrine Ensemble 12 Tabriz Historic Bazaar Complex Tabriz, East Azar Baijan 2010 13 The Persian Garden collection Nine gardens selected from various 2011 regions of Iran Source: UNESCO, 2012
Tourism products (tourist resorts)
The definition of resort in Iran is somehow different from the connotation given to it in other countries. Due to diverse natural assets, the country possesses a large number of tourist resorts ranging from ski, beach, spa and mountain resorts. The majority of resorts are located in Caspean Sea coastal areas. There are a total of 20 ski resorts in Iran, although most of them have little more than a couple of tows. The two well-known ski resorts in the country are Shemshak and Dizin resorts. Both resorts are within two hours drive from the capital, Tehran. Other ski resorts are: Tochal, Damavand, Abali, Darbandsar, Khor Ski Resort, Papayi Ski Resort in Zanjan; Khoshaku in Urmia, Sahand Ski Resort in Tabriz; Kuhrang in Bakhtiyari; Kakan in Yasuj; Tarik-darreh in Hamadan; Alvares in Ardabil; Sepidan in Kohkiluyeh; Shahmirzad Ski Resort in Semnan; Shandiz in Mashhad; Chelgard in Shahr-e Kord.
Iran has many spa and hot spring resorts around the country. The famous spa resorts are located in Sar-Ein region in Ardabil province surrounded by Sabalan summit. Although there
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Accommodations
According to the current classification system operated by ICHHTO, accommodation facilities of Iran have been categorised into officially registered accommodation and non- registered ones. The registered accommodations are: hotels, apartment hotels, pensions, inns, guest houses, youth hostels, tourist camps, seacoast establishments, mineral water establishments (spas), and motels. Non-registered accommodations are sometimes used for tourism purposes such as school dormitories, private rented accommodations, second homes, ashrams, campsites, corporate and government guesthouses. Hotels are further classified into five classes ranging from 1-star establishments that offer basic accommodation facilities and services to 5-star hotels that offer luxury accommodation facilities and services. However, data is only available on hotels, apartment hotels, guest houses and inns. Although data on the other establishments exists in the Amaken (Police) Department, this is not available for tourism planning and development purposes. According to the information supplied by ICHHTO there were 908 hotel establishments with 38,553 rooms and 93,819 beds in January 2012.
Table 6.4 Number of hotel establishments in Iran Number of hotels Stars % Number of rooms Number of beds 301 1 33.33 6,777 16,887 315 2 34.88 9,784 23,746 193 3 21.37 10,833 27,591 73 4 8.08 6,704 15,838 21 5 2.33 4,339 9,451 Total: 903 100% 38,553 93,819 Source: ICHHTO (2011)
In addition, 498 apartment hotels with a capacity of 9,865 rooms and 24,997 beds have been recorded. Khorasan Razavi with 273 apartment hotels has more than 50% of the country’s apartment hotels. There are also 1,535 registered guesthouses in the country with 27,559 rooms and 81,309 beds. The number of pensions reaches 137 with a capacity of 1,080 rooms and 5,109 beds.
Transport structure and network
Iran has a relatively good air, road, rail, and water transportation network that provides tourists access to and within the country. It currently has 54 airports of which nine have the capacity to operate international flights (TINN News, 2011). The most important airports are http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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and public airlines are catering to both international and domestic tourists. Airline companies operating services are: Iran Air, Iran Airtours, Iran Aseman Airlines, Iranian Naft, Airlines Kish, Air Mahan, Air Sahand Airlines, Aria Air, Saha Air, Zagros Air, Caspian Air HESA Airlines (Persian Gulf), Taban Air, Ata Airlines and Fars Air.
Rail transportation The country also had 9,795 km of main railway lines in 2011. According to the Railways Organization, approximately 28.8 million passengers used railway transportation in 2010 (Iran’s Railway Organization, 2011). The rail network operates services as follows: – Tehran to Mashhad. This route is one of the most popular in Iran as Mashhad’s Imam Reza Shrine is the most important pilgrimage site in the country. – Tehran to Tabriz. – Tehran to Golestan, which services Gorgan, one of the most scenic rail journeys in Iran. – Tehran to Khozestan that services Ahvaz-Bandar Khoramshahr, and Ahvaz-Bandar Imam Khomeini. – Tehran to Esfahan-Kerman-Hormozghan line which also services Yadz, Chador Malo, Bafg-Bandar Abbas, Sirdjan City, and from Kerman to Zarand City – The international line from Tehran to Damascus, Syria. – The international route from Tehran to Istanbul in Turkey. – The international line between Zahedan and Kuwaiteh in Pakistan. – The international line from Tabriz to Van in Turkey.
Road transportation It is currently the major means of transport to and within Iran. The main international road access points to Iran are from Turkey via Bazargan and Sero, Pakistan via Mirjave, Armenia via Jolfa, Azerbaijan via Astara, Turkmenistan via Sarakhs, and from Afghnistan via Taybad. These points currently account for most international tourist arrivals from outside Iran. Tehran is the hub of the national trunk road system with five major expressways radiating out of the city leading to the provinces. These are from Tehran to: – Qazvin-Zanjan-Tabriz-Ardabil and connected to the Caspian coast; – Rasht-Ramsar-Noshahr-Ghaem Shahr-Sari-Gorgan along the Caspian coast; – Garmsar-Firoozkoh-Pole Sefid-Ghaem Shahr-Gorgan to the Caspian coast; – Garmsar-Semnan-Damghan-Sharood-Neishboor-Mashhad to the east; – Qom-Kashan-Badrood-Esfahan to the south and Badrood-Yazd to the southeast; – Qazvin-Hamadan- Kermanshah- Kurdistan to the west.
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road transportation. According to the Ministry of Road and Transportation, in 2010, almost 145.8 million passengers used public road transportation within the country (Iran’s Statistics Centre, 2011b).
Public road transportation According to the ministry of road transportation, in 2010, almost 145.8 million passengers used public road transportation within the country (Iran’s Statistics Centre, 2011b). The problem with this data is that it includes a large volume of day transit, day recreation and day commuter traffic within and between the provinces, especially between provinces where the distance between their main cities and towns is not so great.
Private vehicle transportation There is no data on the overall volume of passengers that use private cars in Iran for domestic tourism purposes. The recent Norooz pilot survey of domestic tourism found that 39.3% of travellers used their own car to undertake domestic travel during Norooz. In the absence of any other data, this ratio provides the only reference point on this component of the domestic travel market.
Table 6.5 Domestic passenger volumes, 2011
Mode of transportation Number of passenger trips (million) %
Railway transportation 28.8 15.0 Road transportation 145.8 76.0 Air transportation 16.1 8.0 Sea transportation 1.9 1.0 Total 192.6 100.0 Source: Iran Statistics centre (2011)
Another study conducted by the author indicates that almost 69% of domestic tourists preferred travelling in their own private vehicles, 11% used airlines and 20% utilized trains and public buses.
Water transportation
It has been provided since 1988 when the government owned Valfajer Shipping Line to provide passenger and freight services between Iran and other Persian Gulf and Gulf of Oman ports. Two types of passenger vessel are operated by Valfajer: traditional mono-hull ferry vessels with capacity for up to 300 passengers operating at 8 to 10 knots, and high
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Despite the provision of fast and comfortable jet-catamaran passenger services to Iran from other Persian Gulf States, the current water transportation services are limited in frequency and capacity. According to the Islamic Republic of Iran’s shipping company, there were 138 ships in 2010 which have serviced almost 1.9 million passengers (Iran’s Statistics Centre, 2011b).
Budgets
Annual budget allocations confirm that tourism has been considered as a priority for the country. The 2011 budget and credit allocated to cultural heritage and tourism was a total amount of IRR 5,285,715 millions equal to US$ 46,934,070.32 (based on the exchange rate US$ 1 = IRR 11,262.00). Of this amount a sum of IRR 30,5949,400 million (US$ 271,544,689.57) is allocated to the ICHHTO (Jame Jam Online, 2011b). This amount shows an 11.10% increase compared to that of 2010. Nevertheless, the whole budget allocated for development of domestic tourism was a total amount of IRR 250,264 millions equal to US$ 2,225,637.19.
Marketing (market segmentation of DT)
Due to lack of a systematic method for gathering information about domestic tourists, statistics given by tourism authorities are being questioned. Unlike international tourists whose passports and visas are checked when they enter the country, domestic tourists are not recorded in any database. Although accommodations nationwide will record the detailed information about travellers who enter the lodging establishments, there is a big bias as only certified and registered accommodations report to ICHHTO, other unregistered and unofficial accommodations avoid reporting such information. For example, a vast majority of domestic tourists stay overnight in their second homes, camps, friends and relatives’ houses, home-stay accommodations, government and institutional hotels, inns, guesthouses, ashrams, private houses, and so forth.
On the other hand, such dearth in statistics collection, provided the ground to exaggerate the numbers, and travellers as a general term are considered as domestic tourists. This statistically and professionally wrong look at domestic tourists invalidates any prediction and planning. However, because of lack of systematically integrated and functionally applicable tools to collect statistics, there are only partial statistics on number of domestic trips during the Iranian New Year Holiday (18 March until 2 April) which are gathered at main http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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While industry players declined such huge numbers, officials emphasized on accuracy of statistics. These statistics are fundamentally flawed and in strong contrast with facilities needed to cater for such a large number of domestic tourists in terms of lodging capacity, sufficient infrastructure, transportation services and human resources.
Despite the existence of massive market demand, there is a dearth of knowledge about domestic tourists, their characteristics, length of stay, expenditure, preferences and needs. The only study which can be somewhat relied on is a survey of a small sample of 230 tourists in August 2002 with the objective of eliciting a greater understanding on the profiles of the tourist markets to Hamedan province as a part of the Marketing strategy of Iran’s Tourism Development and Management Master Plan. From this sample, 180 domestic tourists were interviewed. Although the sample is too small to be able to draw any solid conclusions, it does provide an insight into who the tourists are and their travel behaviour. This serves as an indication of areas that should be investigated in greater detail in a wider research exercise i.e. leisure, business and visiting friends and relatives (VFR).
Moreover, a comprehensive research study of 1,000 domestic tourists was undertaken by the author and his research assistant team during April to September 2009 in the main gateways and destinations in Tehran, Esfahan, Shiraz, Mashhad, Gilan, Mazandaran, Tabriz and Hamadan. This relatively comprehensive study makes it possible to draw conclusions on domestic tourism market segmentation. The results show that respondents consist of 50.8% female and 49.2% male. The overall average age was reported to be 33 years. Almost 27% of respondents were working in the public sector, 46% in private companies, 20% were self-employed, 5% retired and 2% classified as others.
In terms of educational qualifications, 61% of respondents had university degrees, 5% a higher diploma, 25% a diploma, 10% secondary and primary education, 2% with no formal education and 2% avoid responding. The average monthly income of respondents was IRR 7,100,000, equal to US$ 649.14. The majority of the tourists (56%) were single and 44% were married.
Results reveal that the main motivations for tourists to travel are; leisure during vacations (47%), pilgrimage (19%), VFR (11%), business and professional careers (10%), ecotourism and nature-based tourism (8%) and other purposes – cultural tourism, shopping, and others (5%). http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Table 6.6 Purpose of visit for domestic tourists in Iran
Purpose of visit %
Leisure 47 Pilgrimage 19 Visiting Friends and Relatives (VFR) 11 Business and professional careers 10 Ecotourism and nature-based tourism 8 Others (cultural tourism, shopping, etc. 5 Total 100
As table 6.6 depicts, the main purpose of domestic tourists is leisure activities (47%). Therefore, travelling for leisure is the fastest growing market in Iran. The main tourist activities for this market are recreational activities, camping, swimming, biking, and other outdoor activities. Summer vacations, the Iranian New Year holiday and other public and religious holidays comprise the peak periods for the leisure market. The major destinations for this market are; coastal areas of the Caspian Sea in the north of Iran (Gilan, Mazandaran and Golestan provinces), Southern coastal areas in the Persian Gulf and the Sea of Oman (mostly Kish and Qeshm islands), Shiraz, Esfahan, Khorasan Razavi, Hamadan, to name a few. Moreover, other destinations such as Ardabil, Kermanshah, Kurdistan, Khuzistan, Chahar Mahal va Bakhtiari, Yazd, Kerman, East and West Azarbaijan are increasingly popular as leisure destinations.
Another large market is travel associated with pilgrimage to sacred places (19%) such as Mashhad, Qom, Shiraz, and other shrines. Iranians have travelled internationally or domestically to Muslim sacred places since ancient times. This market, however, is a wealthy market for national tourism. Mashhad and Qom are the most well-known destinations in this sector. Nevertheless, pilgrimage is often combined with other activities. For example, those persons who travel to Mashhad, the primary purpose is pilgrimage, but, they also visit other natural destinations in Shandiz, Torqabe, or other cultural sites like Nishapor.
VFR is another important market (11%). People living in urban areas often return to their parents or relative’s houses during holidays. They usually visit their ancestor’s homes. This market is enormous for Tehran, as more than five million people living in Tehran come from other provinces. People from this mass market tend to return to their birthplace during holidays. Business and other career professionals such as governmental missions, participating in meetings, incentives, conferences and events (MICE) are an ever-developing market (10%). Tehran, Esfahan, Mashhad, Shiraz, Kish and Tabriz are main destinations for http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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The average length of stay was 3.5 days, although this varied based on their reason for travel. Tourists mostly stayed at recognized accommodations such as hotels (38%), hotel apartments (14%), inns and guesthouses (25%). Furthermore, significant numbers of people stayed at their friends and relatives houses (7%) or other unrecognized accommodations such as local houses (5%), ashrams (3%) and private villas (8%). In terms of origin, the majority of tourists come from popular provinces such as Tehran (31%), Khorasan (9%), Esfahan (8%), Shiraz (6%), East and West Azerbaijan (9%), West of Iran (10%), Yazd, Kerman (8%), Northern provinces (8%), and 11% belong to other parts of Iran.
The majority of tourists (54%) travelled individually and 46% used package tours bought through travel agents. Nowadays, the tendency towards travel agent’s tours and planned itineraries has increased due to offers of cheap and diverse packages to suit different tastes.
Respondents were asked to identify their mode of transportation. Almost 69% of them preferred travelling in own private vehicles, 11% used airlines and 20% utilized trains and public buses. In terms of expenses, domestic tourists spent approximately IRR 900,000 (equal to US$ 83.16) per day, per person. The average expenditure for each person, per trip has been calculated as IRR 3,000,000 (equal to US$ 277.19). This comprises transportation, accommodation, meals, sightseeing and other miscellaneous expenditures.
2) Socio-economic Data
Since 2000, Iran has enjoyed broad-based economic growth. However, strong economic performance has been hindered by high levels of inflation, unemployment and low levels of foreign investment. According to the International Monetary Fund (IMF), the country’s real GDP was US$ 407 billion in 2010 and it is estimated to achieve US$ 475 billion, a US$ 68 billion increase, for 2011 (the International Monetary Fund, 2011). According to the same source, the rate of unemployment in 2011 was 15.3% and inflation rate reported 22.5%. In terms of per capita income, a report shows that annual per capita income of each Iranian was US$ 4,400 in 2010 (Iran Daily Brief, 2011). This agency reported a growth rate of 1% for the country’s economy in 2010.
3) Socio-cultural Data
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same source indicates that the number of households accounts for around 20.7 million and average household members are 3.6 persons. In terms of gender equity, the ratio is 51% male and 49% female.
According to the same source, Tehran is the most populated province with 13.5 million population in the country. Other provinces such as Khorasan Razavi with 5.6 million, Esfahan 4.5 million, Fars, 4.3 million, East Azarbaijan, 3.6 million, Mazandaran almost 3 million are the most populated regions. Tehran, Mashhad, Esfahan, Ahvaz, Shiraz and Tabriz are also the most populated and with high density cities in Iran.
National holidays Public holidays in Iran are a mixture of the Islamic religious holidays, which are not fixed dates according to the Persian or Julian calendars. The public holidays taken officially in Iran are as follows.
Holidays and anniversaries in the Persian calendar The following holidays follow the Persian solar calendar and fall on the same day each year by the western calendar. They may be extended by government decree for a day or more if they fall near the Iranian weekend (i.e. Thursday or Friday).
Table 6.7 Holidays and anniversaries in Iran Date Remarks Holiday Persian calendar English name 22 Bahman 11 February Victory of the Islamic Revolution Yes 29 Esfand 19 March Oil Nationalization Day Yes 1-4 Farvardin 21-24 March Iranian New Year Yes 12 Farvardin 31 March Islamic Republic Day Yes 13 Farvardin 1 April Sizde- Bedar (Nature Day) Yes 14 Khordad 3 June Commemoration of death of late Imam Khomeini Yes 15 Khordad 4 June Anniversary of the uprising against the Shah (ex- Yes king) Last Tuesday night Not fixed date Wednesday Feast (Chaharshanbe Suri) No of each year The last night of 20 or 21 December Shab-e Chelleh (Yalda Night), the Persian Winter No autumn Solstice Celebration http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Religious Holidays in the Islamic (Shi’ite) calendar These holidays follow Islamic calendar and are not a fix date according to Persian and Julian calendars.
Table 6.8 Religious holidays according to Islamic (Shi’ite) calendar Date based on Remarks Holiday Islamic Calendar 9 Moharram Tassoua (martyrdom of Imam Hossein) Yes 10 Moharram Ashura (martyrdom of Imam Hossein) Yes 20 Safar 40th day of the martyrdom of Imam Hossein Yes 28 Safar Death of Prophet Mohammad Yes 17 Rabi-ol-aval Birthday of Prophet Mohammad (peace be upon him) Yes 3 Jamadi-ol-sani Martyrdom of Hazrat‟e Fatemeh Yes 13 Rajab Birthday of Imam Ali Yes 27 Rajab Prophetic mission given to Prophet Mohammad (peace be upon him) Yes 15 Sha‟ban Birthday of Imam Ghaem (also known as Imam Mehdi) Yes 21 Ramazan Martyrdom of Imam Ali Yes 1 Shaw‟wal Eid-e Fetr (marks the end of the month of fasting) Yes 11 Zi-ol-Qadeh Birthday of Imam Reza Yes 10 Zi-ol-Hija Eid-e Ghorban (day of sacrifice) Yes 18 Zi-ol-Hija Eid-e Ghadir Yes
6.1.3 Domestic Tourism Profile
1) Domestic Tourism Data
Number of visitors, evolution and trends
Iran’s tourism industry is being upheld by the large number of domestic tourists who take frequent trips within the country every year. Iranians take trips during the annual spring holidays and mainly visit the sacred shrine in Mashhad and Qom, but also take extended holidays during the rest of the year. Taking a holiday inside the country can be cheap for populations that are not rich enough to go overseas. Every year particularly during spring and winter seasons families travel domestically for various purposes. Besides, at present, there is no overall estimation of the total volume of domestic tourism in Iran as defined by the World Tourism Organization, other than data on the number of arrivals and length of stay in hotels. As pointed out before, due to lack of a systematic method for gathering information about domestic tourists, statistics revealed by tourism authorities are subject to debate. Domestic tourists have never been recorded in any databases. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Although all registered accommodations are required to document the detailed information about tourists who enter into the lodging establishments, these statistics are not available for tourism purposes. Moreover, there is also a big bias as only certified and registered
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accommodations report to the ICHHTO, other unregistered accommodations avoid to report such information.
However, according to the data which has been forwarded to the deputy of tourism, the number of domestic tourists who stayed in recognized accommodations is calculated to be around four million people in one year and their average length of stay is 2.5 days.
Economy contribution: tourism consumption and expenditure
Domestic tourism plays a crucial role in economic development, socio-cultural cohesion and national integration. However, there were no reliable data on the economic contribution and expenditure of domestic tourists in Iran. The only study available is an estimation that has been undertaken by the World Travel and Tourism Council (WTCC, 2011). This study shows that the direct contribution of Travel and Tourism to GDP is expected to be IRR 113,004.0 billion (2.3% of total GDP) in 2011.
This study also indicates that the total contribution of Travel and Tourism to GDP, including its wider economic impacts, is forecast to rise by 4.3% from IRR 306,369.0 billion (6.2% of GDP) in 2011 to IRR 465,172.0 billion (6.4%) by 2021.
Moreover, this study reveals that domestic travel spending is expected to generate 86.8% of direct Travel and Tourism GDP in 2011 compared with 13.2% for visitor exports (foreign visitor spending or international tourism receipts). Therefore, domestic tourism comprises a big portion of the cake and confirms that the tourism industry in Iran is highly dependent on domestic tourism rather than international tourism.
Seasonality index
Seasonality is a common hazard for tourist destinations. Being a vast country; Iran has many regions with different temperatures even at a specific period of time. In fact it offers all sorts of climates and conditions. Depending on the season and the areas to be visited one has to dress and pack accordingly since extremes in temperatures are common.
Spring and autumn are quite short seasons in Iran between the heat of summer and the more changeable and often cold weather of winter. Winter temperatures often fall below freezing point, while summers can be unpleasantly hot, especially for women. In the http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Weather can be humid, dry, hot or cold depending on where you are. Therefore, one can choose from winter and summer sports at the same time within a few hours.
These climatic factors play a dominant role in domestic tourism. It offers a variety and diversity of temperatures and seasonality that literally make the destination accessible to every component of the population throughout the year. The natural and cultural heritage is no doubt governed by climatic factors but it is also an asset that few countries can boast of.
Employment (total, age, gender)
Travel and Tourism is expected to generate 453,000 jobs directly in 2011 (2.0% of total employment). This includes employment by hotels, travel agents, airlines and other passenger transportation services. The total contribution of travel and tourism to employment (including wider effects from investment, the supply chain and induced income impacts, is expected to be 1,238,000 jobs in 2011 (5.6% of total employment). It also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists. However, no information is provided regarding the characteristics and demography of employees.
Travel and trade catering to DT
According to data provided by the ICHHTO on the number of travel agencies and tour operators in 2011, there were almost 3,300 establishments with permits to operate. Of these, Tehran Province accounted for 1,520, Khorasan Razavi was next with 307 agencies, followed by Mazandran with 227 units (ICHHTO, 2011). The rest were scattered around the other main spots of the country with higher concentrations such as Esfahan, Shiraz, Tabriz, Yazd, and Badar Abb.
The existing tour programmes offered to the international and domestic markets include day and overnight sightseeing tours of the natural and cultural heritage, adventure based tours, desert safaris and trekking, mountain trekking and climbing, rural tourism, bicycling tours, nature tours, and other special interest tours focusing archaeology, visiting nomadic tribes, wildlife observation, astronomy, art and craft, and sports such as skiing, hunting, and fishing.
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Agencies under the National Aviation Organization that has more or less the same functions as the Deputy of tourism within ICHHTO.
Restaurants
While there is no official data on the total number of the country’s restaurants, the president of Restaurant Union declared that 900 licensed restaurants are servicing in Tehran. It should be noted that fast food centres are not included in this data. ICHHTO gathers data on roadside restaurants and catering services around the country. According to the department of accommodations and tourist services, in December 2011, there were 2,268 roadside restaurants and catering services in Iran. Statistics on roadside restaurants in 211 suggests that of the 2,268 road based restaurants, 329 were rated as first class, 521 as second class, 1,268 as third class and the remain not being classified. The provinces of Mazandaran, Tehran and Khorasan Razavi account for the majority of restaurants in all classes, reflecting their importance as major tourism destinations in the country.
The restaurants while playing a distinctive function in catering to tourists and to the population at large also are a necessity for the development of domestic tourism. In this respect the control and classification of restaurants provide a key element in domestic tourism as other considerations of health and security depend on their status. The same, however, cannot be said of the informal establishments that exist in places of high congestion during peak affluence.
Health, Hospitals, clinics, medical facilities in areas of congestion during cultural/religious events
According to the Ministry of Health and Medical Education, there were 11,018 medical centres in Iran offering general and specialized medical services of all types (Iran’s Statistics Year Book, 2010). These are divided into Hospitals, Clinics, Hygiene Centres, and Emergency Centres. There were 846 hospitals with 126,845 beds of which Tehran Province with 166 hospitals had the most and Khokilyeh and Boyer Ahmad Province the least with only 6 hospitals. Of the 846 hospitals, 563 are general hospitals, and 142 are specialized hospitals. The main issue from a tourism point of view relates to the quality of medical services outside the main centres such as Tehran, and a lack of quality emergency rescue and medical services in case of accident or other calamity. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Security
Safety and security is one of the determining factors of tourist destination choice. Iran has long been under massive propaganda from western countries over its nuclear programme and, therefore, its image has been tarnished in international markets as an unsafe country. Contrary to this negative propaganda lead by western media, Iran is a safe country and has hospitable people.
Nevertheless, there are many security issues regarding safety and security of domestic and international tourists. Unsafe public transportation particularly airline transportation, individual and organized crimes, and robbery, are among some of the security issues. The airline fleets operated by the Iranian carriers are relatively old, in need of replacement, and generate concern about safety on the part of potential tourist users and especially tour operators. Coupled with a highly protected captive market environment, and problems in regard to perceptions about safety, airline transportation is a sensitive issue. Fortunately the volume and capacity of domestic tourists using air transport is limited and this is not a factor that is a handicap to the development of domestic tourism.
2) Domestic Tourism Products
Sites, attractions catering especially to domestic visitors Iran is a vast and varied country, offering a rich blend of culture, history and heritage and natural attractions that is rather unique in the region. It is home to 19 ski resorts and mountains reaching peaks higher than 5,000 metres, and offers a rich biodiversity as well, with a wide-ranging fauna and flora. In addition to eco-tourism and diving tours, there are mountain, desert and forest trekking packages offered by different travel agencies to both domestic and international tourists. Domestic tourists demand most frequently for natural attractions in scenic areas such as Caspian Sea coastal areas, mountain regions, deserts and upland areas for leisure activities. Other attractions such as religious sites in Mashhad and Qom, and heritage sites in Esfahan and Shiraz are among most visited destinations.
New products As domestic tourists have largely increased and become more sophisticated, a vast number of new tourism products have been developed to satisfy the current demands. There are varieties of new tour packages including ecotourism packages such as bird watching, astronomy tourism, desert tourism, rural tourism, nomadic tourism, agro-tourism, cultural and heritage tourism, health tourism, sport tourism and other special-interest activities. In http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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3) Measurement of Volume and Distribution of Domestic Tourism
Tourism Satellite Accounts (TSA) The tourism satellite account has not been launched in Iran. Although efforts were made during the preparation of Iran’s Tourism Development and Management Master Plan in 2000, to implement the tourism satellite account, this project failed to be completed.
Household surveys A household survey of national tourists was undertaken in 2008 by Iran’s Statistical Centre. The aim of this project was to not only produce required data for tourism satellite account, but also provide statistics to fill the statistical gap for future planning and decision-making in tourism industry. This survey was conducted in spring and winter seasons and covers information about number of trips undertaken by families, the purpose of visit, and estimation of number of trips according to accommodation usage.
The results show that the number of trips made by families exceeds 18 million trips during spring season (21 March until 22 June) and almost 17 million trips during summer season (23 June-24 September) in which in spring approximately 10 million trips were accompanied by overnight stay and 8 million trips were same-day visiting. The number of overnight stays in summer was 12 million trips and almost 5 million trips were same day trips.
The purpose of visits has been classified as VFR (51%), leisure (26%), pilgrimage (17%) and other purposes.
6.1.4 Conclusion and Recommendation
Domestic tourism’s crucial role in economic development and socio-cultural cohesion and integration has been widely recognized in Iran. Nevertheless, there are many obstacles which are impeding its development. Transportation is a major problem. Since air travel is not affordable for lower and medium classes in the society, they have to rely mainly on road and rail transportation. Wherein the problems of reservation and delays in arrival and departure are chronic which more often than not, send the itinerary haywire. In addition, a number of remote tourist spots are unreachable by road and rail transportation.
Another big problem is a shortage of budget accommodations for domestic tourists around the country. It has been realized that there is an urgent need to develop varieties of not only
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need maintenance, and their services are not appropriate for domestic tourists. Plus their prices are above the standard which has been defined for different categories. In addition to the shortage of accommodations, there is also serious deficiency for basic amenities in major tourist sites such as clean toilet facilities, safe drinking water, and a place for rest and light refreshment.
Restaurants and catering services in tourist areas and off-road centres are limited in numbers and the quality of food and other services is below acceptable standards. On the other hand their prices are comparable with five-star hotel services! This situation creates a real problem for those who travel with their families and make their trip very costly.
The government policies and strategies sometimes have negatively affected the development of domestic tourism. As an example, executing the policy of fuel portioning and increasing the oil prices leads to the energy crisis and thus affects domestic tour operators and individual and group domestic tourists who want to travel in their private vehicles. A drastic increase in (almost more than five-times) the fuel prices makes a trip very costly for consumers. Since the application of this policy, domestic trips have been reduced dramatically and domestic tourists changed their directions toward outbound destinations. Nowadays, Iran is a major origin market for Malaysia, Thailand, Turkey, Emirates, Azerbaijan, Armenia, Iraq, Syria, etc.
Safety and security is another issue for public transportation and other related sectors. Since, the airline system in Iran is old and the operators are not able to buy new airplanes due to sanctions, there has been several air crashes during past decade which lead to death of hundreds people. This created a sense of horror amongst people to fly with airlines. Similarly, the rail and road systems are old and need serious maintenance. In addition, same as in other tourist destinations Iran also has a fair share of individual and group crimes, robbery and other security issues in tourist destinations.
Marketing, publicity and advertisement of domestic tourism products are another issue which needs reconsideration. Tour operators and travel agents are very keen to advertise popular destinations rather than remote and untouched areas due to limited infrastructure on sites. Every year there are varieties of cultural and local events that have not yet been recognized for current markets. Here is a crucial role for tourism authorities to record, document and advertise these events and introduce them to domestic markets. The urgent need is to organize big campaigns and mega-events in potential destinations to attract domestic tourists in the off-season. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Local communities in Iran have very limited participation role in domestic tourism development, and therefore, they receive minimum benefits from this business. In order for domestic tourism to contribute to economic development and as a source of job creation, local communities must have a greater role to play in this sector. They need to actively participate and the government should provide the necessary facilities by supporting them in any way possible.
Recommendation
However, considering the above points and in order to develop domestic tourism in Iran, the following recommendations are outlined: – Improve the quality and quantity of tourism products based on market needs; – launch marketing programmes in remote destinations to balance the distribution of domestic visitors; – refine policies and strategies to develop sustainable tourism instead of mass tourism in sensitive areas such as national parks, protected areas, etc; – develop a systematic procedure for collecting required information and statistics about the number of domestic tourists, their preferences, needs, demographic segmentations and so on; – encourage and facilitate the local community’s participation in domestic tourism activities; – provide the ground for private sector to play a leading role in developing domestic tourism; – launch and develop Tourism Satellite Account (TSA) to gather required information about economic impacts of domestic tourism in national economy; – provide the basis for development of domestic tourism for the benefit of the nation; – facilitate and provide the ground for low-income people to travel domestically; – encourage low-cost airlines; low-cost road and rail transportations; establish budget accommodation for youth and backpackers who cannot afford luxury; – create and develop a sense of trust and cooperation among tourism stakeholders; – omit or minimize administrative barriers for establishing business activities in domestic tourism destinations such as travel agents, catering services, etc; – allocate sufficient funds required for development of domestic tourism; – provide incentives for those who travel in shoulder season; – advertise remote and rural areas for the benefit of domestic tourists; – facilitate the processes of licensing for establishing travel agents; – develop new tourism products in shoulder season in order to reduce the effects of http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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– develop strong policies and strategies to conserve the core value of natural and cultural heritages; – control the adverse impacts of tourism and recreation activity on the cultural and natural tourism resources of the country; – improve the attractiveness and appeal of the existing man-made, and expand the range of these tourism resources; – develop an effective system of ‘indicators’ to manage the tourism resources on a sustainable basis; – develop and implement a programme to prepare management plans, undertake site restoration and conservation works, develop state-of-the-art interpretation facilities, and improve tourist facilities and services at all sites considered to be important for the development of tourism; – consolidate the sustainable use of the existing natural and cultural tourism resources and plan their expansion where this capacity exists on a sustainable basis; – ensure that domestic tourism is contributing to a reduction in regional imbalances in income and employment opportunities; – develop a more equitable distribution of tourism within and between various parts of the country paying particular attention to the development of tourism opportunities in the rural villages and towns; – increase the average length of stay of domestic tourists in different destinations; – improve the existing products including better signage, visitor information and interpretation, offering out-of-season seminar and retreat packages in the domestic and regional markets; – improve the existing vacation products through planning and implementation of an improvement and upgrading programme; – improve the content, quality, price attractiveness, and promotion of the existing trade and business based products including organizing of investment promotion programmes; – introduce out-of-season packages to encourage visiting friends and relatives travel; – plan the expansion of MICE and sports facilities designed to cater for a growing domestic and regional international market; – launch mega sale carnivals in low-season in different destinations to attract domestic visitors; – plan the expansion of sightseeing products based on the natural and cultural attractions including its art, craft, traditional villages, nomadic tribes, cuisine, music, and customs; – support local people to actively engage in domestic tourism development by offering them low or without-interest bank loans, tax exemption, etc; http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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– develop the quality of the existing transportation and hotel services – especially airline, and road services to bring them up to international standard and ensure their security; – strengthen and expand cooperation with the private sector in presenting tourist destinations at national and international travel trade exhibitions and events; – develop a greater level of cooperation between the private sector and the cooperative sector; – review and develop the road, air, access infrastructure including support services and bring about greater cooperation with and between the various modes of transportation services; – attract investment for the development of facilities for youth, pilgrimage tours, and low cost forms of travel and accommodation; – provide land for the development of tourist facilities; and banking facilities for tourism; – move the public sector role to one of policy and strategy development, provision of incentives , and regulation, leaving the ownership and delivery of tourist services to the private sector; – seek to lower taxes by moving them to a lower tax classification for domestic tourism operators; – revision of the existing accommodation classification system and promoting quality; – development of a comprehensive tourism statistical system using the UNWTO standards and data collection methodologies; – strengthen the security and quality of the road, rail, and air transportation services for domestic tourists – raise the standards of existing travel services and terminal facilities especially outside of the main cities; – calendar all tourism events such as local festivals, ceremonies, celebrations, and so on in order to attract domestic tourists to participate; – encourage governmental employees to travel inside the country during low- season by giving paid leaves and other travel incentives; – upgrade the existing road infrastructure network, improved road maintenance especially along the main tourist routes, improve safety standards, and develop sufficient roadside support services and facilities; and – launch awareness programmes for both domestic tourists and tourism stakeholders to watch their behaviours when they are in sensitive natural and cultural areas.
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References
Bureau of Statistics (2011), Iran's tourism statistics. Iran cultural heritage, handicrafts and tourism organization, Tehran. Ghaderi, Z. (2011), “Domestic tourism in Iran”. Anatolia, in: An International Journal of Tourism and Hospitality Research, 22(2), pp. 278–281. Iran Cultural Heritage Handicrafts and Tourism Organization (ICHHTO) (2012), Organization’s aims. (Online), available: http://www.ichto.ir/Default.aspx?tabid=86 Iran Daily Brief (2011), Annual per capita income. (Online), available: http://www.irandailybrief.com/?p=5152 Iran Touring and Tourism Organization (ITTO) (2002), Iran's Tourism Development and Management Master Plan: Marketing strategies. ITTO, Tehran. Iran’s Statistics Centre (2011a), The initial reports of 2011 census of Iran. (Online), available: http://www.amar.org.ir/module/News/shownews/page-1924.aspx?NewsId=278 Iran’s Statistics Centre (2011b), Iran's Statistical Year Book, Statistical Centre of Iran, Tehran. Iran’s Railways Organization (2011), The country report on railways. Iran's Railways Organization, Tehran. Isna (2011), More than 160 millions person trips were recorded! (Online), available: http://isna.ir/Isna/NewsView.aspx?ID=News-1740003&Lang=P Jame Jam Online (2011a), Authorized restaurants in Tehran, (Online), available: http://www.magiran.com/npview.asp?ID=2350211 Jame Jam Online (2011b), A look at the status of the budget for tourism industry in 2011 , (Online), available: http://www.jamejamonline.ir/papertext.aspx?newsnum=100843156613 Jihad Water & Energy Company (2010), Ecotourism National Plan (final report), National Committee of Ecotourism,Tehran. The International Monetary Fund (2011), World Economic Outlook Database: Iran. (Online), available: http://www.imf.org/external/pubs/ft/weo/2011/02/weodata/weorept.aspx?pr.x=29&pr.y=11&sy=2010&ey =2011&scsm=1&ssd=1 TINN News (2011), Iran's airports, (Online), available: http://www.tinn.ir/vdcbfsbw.rhbg0piuur.html Tourist Consult. (1975), Iran's Tourism Master Plan. Ministry of Tourism and Information, Tehran. World Travel and Tourism Council (WTTC) (2011), Travel and Tourism Economic Impacts of Iran, London, WTTC. UNESCO (2012), Iran’s World Heritage Manuments, (Online), available: http://whc.unesco.org/en/list/ http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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6.2 Managing “Nowruz” Holidays: The Case of Fars Province, Iran Dr Hamid Zargham
6.2.1 Introduction
Domestic tourism in Iran has been witnessing a growth rate caused by increase in urbanization, growth in numbers of Iranian families with high disposable income, and the proliferation of private vehicles over the period 1997 to 2011. Domestic demand has increased from 450,000 travellers in 1997 to more than 6,500,000 in 2011. It reaches its peak during the Iranian New Year holidays. Traditionally the New Year holiday period (or Nowruz, 20 March to 2 April) is the favoured time for travel, recreation, rest, and visiting relatives and friends. New Year holidays statistics show that the number of trips increased from 19 million in 2002 to 149 million in 2011, generating a cash flow of more than US$ 3.5 billion. As a result of this high travel demand, government authorities encountered serious challenges such as: 1. supply of accommodation services; 2. the need for police, security and emergency medical assistance; 3. provision of tourist guiding and information services; 4. liquidity management; 5. overcharging and supply monitoring; and 6. environmental damage and pollution.
In order to administer wellbeing and comfort of the Nowruz travellers the government has established facilities headquarters at national, provincial, and district levels.
This content analysis study briefly reviews the expansion of domestic tourism in Fars province and summarizes important contributing factors. Through investigating experiences and achievements in management of domestic tours during New Year’s holiday, the study shows that “Nowruz tourism” makes a significant contribution in promoting regional economic growth, improving local economic structures, driving the development of related industries, and enhancing employment and activating domestic demands.
The Increase in urbanization24, growth in numbers of Iranian families with high disposable incomes and the proliferation of private vehicles25 are factors contributing to the increased travel demands of Iranians over the period 1997-2011. For instance, New Year vacations were increased from 19 million people/day trips in 1984 to 149 million in 2011 (Deputy of http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
24 Urbanization rate is 64.9% in Iran based on (Iran Statistics Center, 2008). 25 According to official statistics more than 46% of Iranian families had private vehicle's and this number is still increasing (Iran Statistics Center, 2008).
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Tourism, Nowrooz Traval Statistics, 2011). Consequently, the Government is faced with serious challenges in the provision of accommodation, transportation services, banking, guiding and information services, during the 15 days of New Year holidays. To come up with these challenges Iran Cultural Heritage Handicrafts and Tourism Organization (ICHHTO) has established the New Year Facility Headquarters under the management of a vice president. The function of this headquarters is to provide welfare services for travellers and encompasses the cooperation of 15 private, public and government organizations.
The operational charter of the headquarters determines roles and duties of the members and also the level of their cooperation. It also lists the annual budget appropriations for travel and tourism management (Deputy of Tourism, 2009). Provincial headquarters have functioned for the past six years during which team successful achievements have been acknowledged (Bureau of Tourism, 2010). Annual performance data of provincial headquarters have been evaluated according to 11 criteria and on 88 indices. Successful results are incorporated in forward planning. Despite these positive aspects the Headquarters face other problems and challenges. Included amongst them are those that require solutions at national level and others that are specific to particular tourism destinations and provinces.
Fars province is one of the top three provinces that are particularly attractive to tourists, and with cooperation of private sector has had successful experiences in New Year service management. This study aims to exemplify the Government plans and policies implemented in this province for managing "urban and public service", "transportation and traffic", "information and guiding", "health care", "rescue services management", "monitoring of tourism facilities institutions", and "production of artistic and cultural programmes" during Nowruz holidays. In addition it will show the challenges and problems confronting this managing model and finally it will suggest operational guidelines.
6.2.2 Nowruz in Iran
Nowruz marks the first day26 of spring and the beginning of the New Year in the Iranian calendar. It is celebrated on the day of the astronomical vernal equinox, which occurs on 21 March. Today more than 300 million people in Iran, Iraq, Afghanistan, Tajikistan, Azerbaijan and other Central Asian countries, the Caucasus, the Balkans, Black Sea and Middle East areas celebrate this event. The tradition of spring Nowruz expresses the ancient emphasis of living in harmony and balance with nature (Kaviani, 2006). http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
26 The UN's General Assembly in 23 February 2010 recognized March 21 as the International Day of Nowruz.
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Iranians consider Nowruz as their most significant celebration of the year. The most important Nowruz customs are "purchasing clothing for the new year", "growing wheat at home", "house cleaning", "preparation of Haft Sin27", "family gathering around Haft Sin at the time of Nowruz announcement (Sal tahvil)", "visiting family and friends", "painting eggs", "spending time outdoors", "New Year Gifting", and etc.
Two weeks of school holidays28 and good weather conditions make Nowruz the perfect time for Iranian families to travel. The main purposes of New Year journeys are “visiting family and friends", "recreation", "shopping", "pilgrimage", and "visiting new destinations".
During the 1980s disruption resulting from the Iran-Iraq war included loss of effective infrastructure in the country, there was insignificant tourism activities associated with government economic planning but during Nowruz holidays people spent time for visiting friends and family. From the 1990s onwards population migration29 from rural villages to larger towns and cities occurred. This urbanization led to increased internal tourism, which put a strain on infrastructure. With the upgrading of the infrastructural regime and improved tourist facilities at popular destinations the public’s knowledge of tourist destinations was enhanced. There was growing interest in travel and learning about Iran’s natural beauty and ancient heritage locations. Travel to 10 of the major cities in the country increased markedly. Statistics indicate that the 19 million people-day trips of 2005 increased to 149 million people-day trips in 201130 and the tourism industry earned more than US$ 3.5 billion from these travels (Deputy of Tourism, Nowruz Travel Statistics, 2011).
The most significant problems of Nowruz trips are as follows: 1. The demand for tourist accommodation has increased to the point where it is 5-7 times more than beds available in the country (Fars Province Tourism Development Document, 2010). For instance the tourist accommodation capacity of Fars province is 21,800 beds (Fars Province Tourism and Cultural Organization, 2011). On the average during Nowruz 2011 up to 280,000 tourists were accommodated in Fars province and there was an unfulfilled demand for about 160,000 beds per night (Fars Province Travel Facilities Headquarter, 2011).
27 Haft Sin or the seven "S"s is a major traditional table setting of Nowruz. Today the Haft Sin table includes seven specific items starting with the letter "S" or sin in the Persian alphabet including Sabzeh (green grass), Seeb (apple), Serke (vinegar), Samanoo (a sweet pudding made of wheat), Senjed (special kind of berry), Sekke (coin), Seer (garlic). Haft Sin is the most popular symbol in Iranian New year festival. Seven is a sacred number. In ancient Iran the items symbolically correspond to seven immortals (Dadkhah, 2001). 28 Iranian official holidays are from 20-25 March. But Iranian people according to old customs meet relative and friends or travel till second of April. Schools are close from 2 March till 2 April. 29 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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2. More than 90% of tourist travel utilized road transportation (Organization, 2006, 2008 and 2011). The main challenges affecting Nowruz road trips are managing road accidents, reception units, guiding travellers, and travellers’ safety on the roads31 (Teams, 2011). 3. Close to and during the Nowruz holiday period in Iran there is considerable spending on shopping, renovation of homes, purchase of new furniture and also travel (Trade Organization, 2011). This results in the withdrawal of large amounts of money from banks. This can result in a serious challenge to the banking system especially during the popular holiday period32. 4. Iran still does not have access to comprehensive tourism and travel information (Royan, 2010), therefore travellers are compelled to make their own travel decisions and are often confronted with a lack of essential information at their destinations. Therefore provision of comprehensive road information is very important. To achieve this in 2011 more than 14,000 volunteers from the people of Iran‘s Red Crescent, Cultural Heritage and Tourism Organizations were responsible for guiding and provision of information for travellers within Iran (Fars Province Travel Facilities Headquarter, 2011). 5. The increase in pollution, particularly in areas of natural beauty outside the major cities, is another outcome of Nowruz travel intensity (Res). Waste control by waste gathering and disposal is the duty of municipalities in Iran. During Nowruz Holidays effective waste disposal depends on the cooperation of volunteers from the Red Crescent and the environmental advocacy groups.
6.2.3 Nowruz Holidays Management in Fars Province
Government Macro Policies for Managing Nowruz
New Year trips facility headquarters was formed to manage tourism services in 2005. Iran's vice president and head of the CHHTO was appointed to the presidency of this organization. Since 2005 the headquarters has, each year, been administered by presidents appointed from governors33 of Iranian Provinces (Formation Law of Iran Trip Facilities Headquarter, 2006).
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The Head of the Cultural Heritage and Tourism Organization is appointed as a secretary of the headquarters. The Secretariat of the headquarters consists of 15 deputies 34 (or operational teams). The main task of this sector concerns the welfare and comfort of travellers as well as planning and monitoring of Nowruz trips. The following are the main governmental policies implemented to achieve the aims of the organization: 1. Formation of operational teams working in a headquarters’ type format with the presidency of a governor 35 from each province. Emphasis is to be placed on interaction and cooperation between the teams. 2. Increasing the working hours of 15 state organizations and in particular of medical services, banking facilities and suppliers of foodstuffs. 3. Preparing public spaces, city beautification, floriculture, grass planting in the city, extending information panels (tableau) and temporary banners to guide travellers. 4. Providing cheap accommodation for low income groups by using schools, student dormitories, temporary camps and tents. 5. Using all emergency facilities and related agencies (organizations) such as Iran Red Crescent, student Basij organization (student Mobilization) and law enforcement (police) rescue teams. 6. Full use of private sector capacities in accommodation-services (rented apartments or houses and temporary camps), homemade foods, hosting, handicrafts and tour guiding. 7. Performing artistic, entertaining and cultural programmes. Provincial trip facilities headquarters evaluate the performance of the operational teams and of the active members of headquarters and reward selected active groups.
Plans
Fars province has an area of 122,400 km2 36 and includes of 29 administrative areas (Fars Governor Office, 2011). It has more than 2,819 registered historical sites37 (Deputy, 2011). The main attractions in Fars province include Persepolis and Pasargadae Complexes with a history dating back more than 2500 years, Sassanid palaces and fire temples, ancient mosques exhibiting magnificent architecture, mausoleums of 2 famous poets Saadi and Hafez, beautiful rural and nomadic areas, exotic gardens, holy shrines, a variety of local cuisines, modern medical facilities and more than 77 types of handicrafts. Such is the
34 This national program was successful and therefore in next year trip facilities headquarter activities were not limited to new year and it applied for summer trip management. 35 It consists of cultural Heritage, Handicrafts and tourism organizations, Terminal and Transportation office, Red Crescent organization, Police, Islamic Republic of Iran broadcasting, Justice, governor general of social affairs, http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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uniqueness of these attractions that Fars province has been one of the most popular tourist destinations over many decades.
Most of the Fars province attractions are located in, or close to Shiraz. Persepolis is situated 60 km northeast of Shiraz. More than 82% of Fars residential centres are located in Shiraz. Consequently more than 84% of tourists who came to Fars province have stayed in Shiraz (Fars Province Tourism Development, 2011). So, Shiraz is the main for visitors to Fars province38. Isfahan-Persepolis-Shiraz, Kazerun-Bushehr, and Shiraz-Bandar Abbas are main routes, and Margon, Sepidan, Pasargadae, Firuzabad and Bavanat are top destinations for travellers in Fars province. During Nowruz holidays more than 7,550,000 tourists with expenditure totalling US$ 130 million have visited these places (Fars Province Tourism Development, 2011).
Survey shows that 8,700,000 people have entered Fars province as tourists (Fars Tourism Organization, 2011). 35% of these visitors were in transit. About 15% were affluent tourists. They utilized air transportation or their own vehicle and stayed in hotels, motels or rented houses. 55% of visitors who travelled with their own car stayed in private tents, camps or schools (Res).
Provincial headquarters formed teams in many cities of the province and adopted differing plans under the leadership of 15 deputies. Executive plans of 10 deputies of the headquarters are documented, and include information on the position of the private sector. These plans are the result of cooperation between state and private sector. Therefore private sector involvement is a crucial aspect of this national project. Furthermore the satisfaction recorded by visitors of the New Year facilities and services has increased. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
38 More than 84% visitors of Fars province visited Shiraz.
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Table 6.9 Descriptions of the programmes run by Fars Province Trips Office, 2011 Headquarters Programmes run in Nowruz holidays (2011) Cooperation rate of deputies private sector (pperational teams) Tourism deputy1 Guest welcoming programmes and ceremonies, printing and Tour guide trade distributing 29 booklets and maps for the Province guidance, union introducing health points and trip security, courtesy in local communities, guides, agencies sending Bluetooth to say welcome and guide, setting the offices and cheap biggest ever state Haft Sin* table, activating 120 state tours, artists and databases and tourist attractions entries, free trips in the cities companies preparing and suburbs, showing films about the province touristic voluntarily the Haft attractions, 1,680 presentations about sights and places Sin* table . putting phone lines into operation to guide the tourists, and employ 210 local guides. Rescue and Establishing 26 rescue centres in event venues of the More than 465 assistance province, employing 335 operational teams in the rescue members from youth centres, establishing 47 guidance offices in the entrances of centres and about 90 touristic places and heavily used parts of the cities, pitching volunteers as guides. tents for praying, establishing 20 tents equipped to test blood sugar and pressure and 26 camps for the travellers' rest between the cities, and giving presents to the children. Health and 58 night and day hospitals, 100 pharmacies, 28 night and day treatment laboratories, 31 radiology centres, 25 dialysis centres, 6 medical supplies centres and 17 dentistry clinics, 60 clinics, more than 144 road emergency teams, 4 health centres and one rescue helicopter . Cultural and social Performing 300 plays, games and reciting plays and More than 120 high residential places, Saadi and Golestan and Nowruz school and university ceremonies and photos fairs, games by SMS, ancient Hafiz students' mobilization and Qoran scripts fairs. centres and about 24 art and cultural departments. Military and traffic Printing and distributing guidance booklets, maps and – security points to prevent house theft and safety in trips, printing Nowruz Nameh (Amin magazine), announcing notices and instructive messages in the local and provincial press and consultation for the people referred to social assistance and benefiting from children and flowers pictures in police banners. Communications Broadcasting a morning Nowruz programme bulletins with the and information latest news from the facilities headquarters, news about the touristic places and famous Fars province personalities, weather and roads conditions, presenting Shiraz and other cities of the province, special programmes, safety points for
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Table 6.10 Descriptions of the programmes run by Fars Province Trips Office, 2011 Office assistance The programmes run in Nowruz holidays (2011) The cooperation rate (operational teams) of private sector Settlement and Establishing 9 information centres to guide the guests in 9 About 4,000 private entertainment1 parts of Shiraz, 4 in the city entrance; preparing sport houses with the saloons, big mosques, camps, tents, parks and classrooms capacity to receive to settle 235,000 people in the province; managing the 10,000 people were services in the accommodation and entertainment sites by made available. About employing relevant personnel in three shifts; increasing the 145 municipality capacities of the parking buildings; liaising with the volunteers were active. municipality mobilization section to obtain houses for rent. Welfare and Deploying 135 trained personnel to supervise the activities – services2 of city commerce organizations, bakeries, and the work hours of different professions; night and day information service (Phone number: 124), accelerating to look into people's complaints, taking place two fairs with cheap goods, distributing enough goods in the markets (Such as oranges, red meat, etc.), employing inspectors in main economic centres, cold storage, etc. Air transportation Employing night and day director's deputy on duty in the – terminals, preparing parking for international flights, extra flights and daily examination of Bank Melli cash dispensers in the airport by appropriate employee. Road Information to sell tickets in advance and programmed trips, – transportation3 harmonization with the company distributing oil products to provide necessary fuels, sending SMS with safety advices for trips, unnoticeable traffic control in different roads (hidden cameras) and distributing forms seeking people's view (Nowruz travellers' booklets)4. 1) Including municipality, education and Cultural Heritage, Handicrafts and Tourism Organizations. 2) The assistance includes Commerce, Punishment, General Cultural Heritage, Handicrafts, Tourism and Intelligence Service Organizations. 3) Transportation, Traffic and Military Organizations. 4) Distributing ten thousand forms asking people's viewpoints, tracts and 3,000 booklets for the travellers about province transportation services and distributing 20,000 brochures and SMS number 3,000,143 for the province transportation information.
6.2.4 Conclusion and Recommendations
Nowruz is a very important phenomenon for the society and economy of Iran. New Year trip headquarters is a managerial pattern based on the cooperation of governmental organizations in tourism field coupled with government political and economic support. A major characteristic of this structure is dependency on direction and support from officials http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Fars province has 7.6% land area of Iran. It has the greatest number of towns and cities, and its population is more than 4,500,000 habitants. These characteristics make it special. The New Year facility headquarters pattern has been more effective for smaller provinces but in Fars province it needs to be reviewed. Such a review should cover province tourism zoning, definition for zone management between cities and province, and training governmental and private sector staff in city centres so that they can play an effective role in headquarters activities.
The rules do not permit province trip facility headquarters to undertake marketing advertising. Creating new and diverse attractions is the responsibility of tourism offices but unfortunately all Nowruz related activities – the main domestic tourism opportunity – is considered to be a headquarters responsibility. Trends in recent years indicate families in the middle and upper social classes, influenced by social and economic factors, have found domestic and foreign alternatives for Nowruz trips. Fars province management has been unaware of this reality, so every year the number of visitors with relatively low incomes has increased in Fars province.
Although using private sector’s potentials and cooperation is a priority of the headquarters, apparently they have not found a framework to put it into practice. Fars province has a high potential to use private sector cooperation in investment, managing and performing cultural and artistic programmes, producing and selling handicrafts, performing exhibitions and festivals and also offering local food products. But in New Year, private sector cooperation is confined to guiding and giving information, and only limited participation in performing artistic and cultural programmes and supplying accommodation.
Problems and Recommendations
1. Lack of coordination in information centres: most governmental offices issue maps, brochures and catalogues separately. Information is not up to date and duplication of effort confuses travellers. It is suggested that the tourism organization needs to ensure that information is presented in a professional way. 2. Inappropriate management structure: current rules require provincial trip headquarters to form operational units in towns. Fars province has 29 towns and members of the town units are usually untrained. Provincial headquarters must hold several briefings for members of the town units during New Year holidays. Last year the executive managers of provincial headquarters spent more than 1800 hours on these briefing sessions and therefore they did not have enough time for core activities. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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3. Environmental pollution: although there are a lot of efforts to prevent environmental pollution by visitors, such as distributing training packages, putting up warning signs, and distributing garbage bags, visitors still leave a lot rubbish in the countryside and in tourist sites. During New Year holidays this is difficult to control Because of the large numbers of people. A tourist attraction may need several weeks after the New Year holidays to regain its freshness. It seems site managers have not had enough training and travellers are not well informed on how to keep the natural environment clean. Government should train officials and people during the whole year to have a better result in New Year holidays management. 4. Lack of inexpensive tourist accommodation: capacity of Fars province tourist accommodation (Hotel, hotel apartment, inn) is 21,800 beds, less than 9% of the New Year beds demand. Fars province accommodated 280,000 people per night in the 2011 New Year holidays, around 20% of them staying in their own tents. An increasing number of visitors cannot afford to stay in hotels. Field studies show that local communities have a high willingness to offer residential services (houses and apartments) to travellers. If these places in the Fars province were identified and registered in advance, current capacity would increase from 12,000 to more than 80,000 beds. 5. Fars province has an active private sector: there were applications to invest US$ 1 billion (2008 to 2011). But just US$ 47,000 was approved (Investment Deputy, 2011). Fars province, with more than 120 travel agencies, about 527 tour guides (Organization F. C., 2010), and many attractions, has a high potential to benefit from tourism by private sector investment. Unfortunately this potential could not be realized with respect to the provision of New Year services. 6. Hotels remain empty in the second part of the New Year holidays despite the high demand for accommodation: Hotels, and hotel apartments, share of the accommodation supply declined from 11.58% in 2008 to 3.34% in 2011. The hotel occupancy rate was 100% during Nowruz holidays in 2008. But the proportion of visitors who used private tents increased from 4.7% in 2008 to 38% in 2011. In the second part of the Nowruz holiday in 2010 and 2011 around half of the beds of 3 star hotels and up were empty, while in contrast there was an increasing demand for low- priced accommodation such as camps, private tents and student dormitories.
Table 6.11 Residential patterns of Nowruz visitors in Fars province (%) Year 2008 2009 2010 2011 Hotel and guest house 11.58 8.66 6.89 3.34 Rented house and apartments 6.68 4.77 1.68 2.39 Temporary camps 29.49 26.39 23.97 30.40
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7. Iranian families have encountered with growing deficit in recent years: For example in 2010 average annual household expenditure in the city was 113,678,000 Rials and average annual family income in the city was 106,156,000 Rials (Center, 2010). This situation has made people cautious about unnecessary expenditure. Since Nowruz trips have historical and traditional significance, the number of such trips has not reduced but average length of stay and type of accommodation have changed markedly toward low-cost options. 8. Until beginning of 21st century domestic destinations such as Fars province, Isfahan, Caspian Sea resorts and Mashhad were the first choice of Iranian travellers, and relatively affluent people were able to travel abroad. In the last 10 years advertising for foreign destinations has been increased, resulting in more people travelling abroad. In 2011, 6 million people left the country for the purpose of doing tourism activities (ICHHTO, 2011). There is also growth in new destinations and activities in Iran. Destinations in the west, North West, south west, north east and south east of the country were developed to compete with traditional destination like Fars, Isfahan, Mashhad, Caspian shores and Qom. As a result, the proportion of high income visitors to Fars province reduced and proportion of low income visitors increased. The main reasons for the decline in high income visitors are that Fars managers did not pay enough attention to develop new and varied attractions. The lack of marketing efforts and the non-competitive price of tours of Fars province when compared with the cost of tours to foreign destinations are other contributory factors.
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Bibliography
(n.d.). Reseacher's field study during New Year 2010 and 2011. Bureau of Tourism (2010), Fars Province Tourism Development, Fars, Iran: CHHTO. Center, I. S. (2010), Draft of Income and Expenditure Statistics, Iran Statistics Center. CHHTO (2011), Report of CHHTO, Tehran: Cultural Heritage Handicrafts and Tourism Organization of Iran. CHHTO (2009), Facilities Performance Report of Iran New Year Trip, Tehran: Headquarter of CHHTO. Cultural Heritage, H. a. (2011), Annual Statistics Reports of Fars Province, Tehran, Iran: Cultural Heritage, Handicrafts and Tourism Organization. Dadkhah, M. A. (2001), Nowruz and Haftsin Philosophy. Deputy of Tourism (2009), Nowrooz Trip Facilities, Tehran, Iran: Iran Permanent Headquarters. Deputy of Tourism (2011), Nowrooz Traval Statistics, Tehran, Iran: Cultural Heritage, Handicrafts and Tourism Organization. Deputy, I. C. (2011), Report of Registered Sites, Iran Cultural Heritage Deputy. Fars Governor Office (2011), Report of Fars Governor Office, Shiraz: Fars Governor Office. Fars Province Tourism and Cultrural Organization (2011), Shiraz: Department of Statistics. Fars Province Tourism Development (2011), Fars Province Tourism Development Report. Shiraz: Royan Consular. Fars Province Travel Facilities Headquarter (2011), Fars Province Travel Facilities Headquarter' Reports, Shiraz: Fars Province Travel Facilities Headquarter. Fars Tourism Organization (2011), Fars Tourism Organization' Report, Shiraz: Fars Tourism Organization. Formation Law of Iran Trip Facilities Headquarter (2006), Report of Formation Law of Iran Trip Facilities Headquarter. Investment Deputy (2011), Report of Investment Deputy, Ministery of Economic and Finance. Iran Statistics Center (2008), National Statistical Yearbook, Tehran: Iran Statistics Center. Kaviani, N. (2006), Nowruz Tradition in Iran, Tehran: Mehr Publishing Co. Organization, F. C. (2010), Performance Report of Fars Commercial Organization, Shiraz: Fars Commercial Organization. Organization, I. T. (2006, 2008 and 2011), Report of Iran Terminals and Transportation Organization, Iran Terminals and Transportation Organization. Royan (2010), Fars Development Document and Marketing Report, Royan. Teams, F. P. (2011), Performance Report of Fars Province Rescue Teams, Shiraz: Fars Province Rescue Teams. Trade Organization. (2011), Trade Organization Performance Report, Trade Organization.
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6.3 A Case Study of Best Practice in Educational Tourism: Student Tours and Visits in Iran By Mr Masih Sharif
6.3.1 Introduction
Since ages travelling has been considered as one of the most important vocations to enrich thought and knowledge available to human beings and there are numerous examples of this in religious teachings and in the words of the elders. As for students while education and thought are two inseparable items to be taken into consideration in planning their trips, it is observed that in many cases all too often the outings become a means for pleasure and entertainment at the cost of education and knowledge. One of the characteristics of the new systems of education is special attention to complementary activities which the students absorb in the classroom and continue with it when they leave school. A clear example of such activities is educational tours and visits which take place with the participation, cooperation and interaction of the teachers, students and their parents and leads to a flourishing of talents, deepening the studies, practicing the lessons, giving a sense of responsibility through peaceful coexistence and cooperation, familiarizing with local, regional, national and global cultures.
Domestic tourism in Iran has been the main beneficiary of student educational tours that are carried out with total state support in a systematic and popular way throughout the country. From a socio-economic point of view these tours are extremely significant in leading to more understanding not to mention the direct and indirect economic impacts. Another aspect is the redressing of urban/rural imbalance.
The Ministry of Education of Iran, particularly those in-charge of the Students Organization of Iran as the main organization in charge of the education of students pays special attention to educational tours and visits as a systematic and purposeful activity which plays a significant role in meeting a big part of social, emotional, physical and other needs of the students. The policies for these tours and visits which are signed by the highest governmental education authority (Minister of Education) are made by the Training and Cultural Deputy of the Ministry of Education together with the Supreme Council of Education and the Supreme Council of Cultural Revolution according to Iran's 20-year vision plan. In organizing these tours they also interact with the Iranian Cultural Heritage, Handicrafts and Tourism Organization through memorandums of understanding. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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6.3.2 Definition and Types of Students Tours and Visits
Here is how student tours and visits are defined and categorized in the operational regulations of the Iranian Ministry of Education (2004):
1) Student Tours
Definition According to the operational regulations of the Iranian Ministry of Education, a student educational tour is defined as “an educational activity which is organized for a certain number of students under the supervision and direction of qualified educators, with objectives, plan, organization, time and certain age group, according to granted permissions from relevant references, in proper environment inside or outside the educational environment”.
Objectives The objective aimed by organizing educational tours is to realize part of the set objectives of the educational system in different educational levels, approved by the Supreme Council of Education and the Supreme Council of Cultural Revolution including: – Increasing the sense of responsibility and participation of the students; – recognizing, fostering and directing the talents of the students; – enriching the students educational programmes and leisure time.
2) Student Visits
Definition A student visit is defined as an educational activity organized for a certain number of students under the supervision and direction of qualified educators with objectives, plan, organization, time and certain age group, according to granted permissions from relevant references for visiting places, centres and special programmes or visiting individuals.
Objectives The objective aimed by organizing educational visits is to realize part of the set objectives of the educational system in different educational levels including: – Improving the religious and national identity of the students and increasing the level of http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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– different occupations and professions as well as various production and service activities; – religious, historical, cultural, scientific, artistic, sport places and monuments; – living skills and environmental issues; and – gaining experience and comparing theoretical studies with real circumstances in society.
However, the operational regulation of the Iranian Ministry of Education (2010) merges tours and visits, defining a tour as “a social trip of a group of students with scientific, educational, cultural, pilgrimage, recreational and sports incentives which are organized with permissions from relevant references”.
New objectives set for these tours and visits are: – Creation of the possibility for practicing a social life emanating from Islamic values; – strengthening and consolidating the ideological-moral aspect of the youth and adolescents; – gaining experience in different social, moral and cultural contexts; – helping the process of socialization and promoting social skills; – creating a proper ground for growth and flourishing of individual talents; – increasing general knowledge in history, geography and culture of Iran and familiarizing the participants with the history and civilization of Iran and Islam; – expanding and deepening individual skills and promoting the level of consciousness and the understanding power of the participants; – special orientation for deepening the spirit of patriotism and attachment to the country; – familiarizing the participants with the living circumstances of the people in deprived areas.
Organizing Policies – Organizing the tours must be in a way so that it leads to strengthening and expanding Islamic measures and values. – In planning and executing the tours, attractiveness, diversity, vitality and active participation of the participants must be considered. – The plans must correspond to emotional, social and physical need of the participants and the diversity and quantity of the tours must be planned to cover the interests of the participants. – Short term direct and indirect training programmes must be considered in some special tours. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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3) Type of Tours and Visits
From the point of view of duration these tours and visits are divided into two groups of a) one day, without night stay which start from the morning and end the same night and include students in all levels and, b) those of several days with night stays which do not include pre-elementary and elementary school students. From the geographical point of view they may fall into urban, provincial, national or overseas. According to the organizing level, it may be categorized as school (educational centres), area (an area within the city), province, polar (several areas or provinces) and country. Educational tours are also categorized based on their themes which include: endeavour and construction, educational- scientific-research, pilgrimage-excursion, sport, cultural-artistic, defence skills, hygienic, relief and rescue, educational-recreational, touristic, reconstructing the students’ individual and social skills (for disabled students with special needs), combinational tours (diversity in themes and plans), religious-political, visiting celebrities, etc.
4) Planning and Organizing
Planning Planning is done in three levels, school, area and province. Planning for the student tours and visits at the school level is done by the school council based on the following items: – Considering and approving the school’s proposed tour and visit plans; – approving the content place, time, and the duration of tour and visit; – financing the tours and visits; – agreeing with execution or cancellation of tours and visits; – supervising the consideration of criteria and qualifications of selecting and dispatching students; – considering and approving full safety of the school’s proposed plans; – supervising and evaluating student tours and visits for realizing their objectives.
The principal of the school, among all other tasks, foresees and sets the yearly schedule of tours and visits and provides a copy to the school council. He selects the supervisors and approves the executive team of the tours and visits suggested by the supervisor and informs the parents of the students about the objectives and plan of the tour and visit (its destination and duration. He also, provides the supervisor with necessary facilities and credits and is responsible for the provision of a post-tour’ report to the school council after every tour and to the area council every three months. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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– foresees sets and organizes the plan for centralized tours and visits with priority given to deprived schools; – grants permissions; – considers and approves the safety of destinations outside cities proposed by the schools and the area; – obtains necessary facilities for the school and area’s tours and visits; – supervises and evaluates the function of schools regarding tours and visits and encourages active annual school participation; – concludes, considers and evaluates tours and visits in the area; – promotes and assesses tour and visit activities; – introduces educational personnel to the provincial council to approve specialized tour and visit educational programmes; – obtains permissions and planning for organizing short term educational programmes and briefing sessions for teachers and executive teams of tours and visits; – prepares 6 monthly performance reports of tours and visits and send them to the province; – provides judicial and legal support for the principal and the executive team.
At the provincial level the tasks are mainly the same as at the area level but with a larger perspective.
Executing Team The executing team consists of a supervisor and a teacher. The supervisor is an individual responsible for executing the tours and visits plans. The teacher is an individual with certain qualifications who is selected proportionately with the content and plan of the tour or visit and is responsible for executing his/her tasks under the supervision of the supervisor.
6.3.3 Case Study of Student Educational Tour Operation
1) Far’Avaran Association
Traditionally the job of organizing student tours and visits is done by the schools (educational affairs office) themselves. However there are very few individuals, travel agents, institutes which offer such services. Established in 2004 based in Tehran, Far’Avaran Association is an association created by a group of tourism graduates/tour guides aiming for cultural and tourism development which mainly deals with organizing student tours and
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Its objectives include: – Investigation and research in different fields of tourism in Iran; – recommending practical solutions in order to promote culture of tourism among the youth and the society; – creation of national and international relations to enrich scientific sources in tourism; – encouraging the youth for more activities in the field of tourism; – educating individuals and familiarizing them with Iran’s tourism capacity and capabilities; – preparing the society for advancing the objective of “dialogue between civilizations”.
In order to meet its objectives Far’Avaran benefits from any of the following ways or a combination: – Creation of tourism information sources from within the country and abroad; – supplying up-to-date tourism information in and outside Iran; – establishment of centres and branches for research; – providing services in the region; – production of brochures, books and audio-visual products related to the association’s activities; – organizing exhibitions, congresses, seminars and festivals as well as domestic and international educational tours related to the objectives of the association; – organizing short term courses and training workshops to improve the culture of tourism; – cooperation with other associations, organizations, institutions and other governmental and non-governmental activists in tourism in order to elevate the level of tourism culture among the youth; – organizing national and international competitions and cultural programmes in tourism; – representing related national and international entities and organizations; – giving advice in different affairs in the area of tourism, cultural heritage and handicrafts; – executing cultural, research, educational, promotional and developing projects in tourism, cultural heritage and handicrafts.
As it can be noticed, one part of this association’s activities is allocated to organizing domestic and international educational tours. Particularly domestic educational tours for school students comprise one major part of their activities. This is why Far’Avaran association considers the scientific and educational aspects and designs tours in which in addition to creation of entertaining and attractive environment for the students, they are http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Benefiting from proper quality services during the tours is among the characteristics of these tours. Creativity and knowledge acquisition that are basic to these tours governed by the regulations of the Ministry of Education, safety standards are not ignored. The tour guides in addition to their expertise in tour guiding, are trained specially for organizing student tours which in turn puts both students and educators at peace and comfort. Offering healthy nutrition is another factor which is emphasized in these tours.
In designing objective-oriented educational tours Far’Avaran association takes into consideration important factors as follows: – Creation of healthy, pleasant and entertaining environment; – concentration on team work; – creation of sense of social and individual responsibility; – fostering individual creativity; – practicing living skills; – emphasizing on the principles of preserving the natural environment; – recognizing, understanding and respecting the local communities; – paying attention to the principles of sustainable development of tourism.
Examples of tours organized by Far’Avaran include: – Educational workshops in form of tours and theoretical sessions in more than 20 domestic destinations as well as some international ones – One day health and relaxation tours – Tour of photography (pictorial composition) – Familiarization with principles of mountain climbing – Cinema and its historic evolution in Iran – Oil industry and petroleum products – Food industry and its role in today’s life – Historical neighbourhoods in Tehran city – Art of surviving in the nature – Familiarization with the principles of Astronomy http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 6.2 Far’ Avaran
Note: Explanation for each photo Top left: Elementary School girls, learning principles of eco-tourism, Chitgar Jungle Park, Tehran Top right: Guidance school girls learning how to work with a compass, Chitgar Jungle Park, Tehran Bottom left: High school boys visiting Aligholi Agha historic bath house (hammam), Isfahan Bottom right: High school boys in Mesr Desert, central desert of Iran, Mesr Source: Far’Avaran Association
Table 6.12 Destinations of Far’Avaran student tours 1-Day tours 2-Day tours 3-Day tours and longer Maranjab Desert Isfahan Isfahan Deire Gachin Caravanserai Yazd Isfahan, Shehrekord Semnan Mesr and Jandagh Desert Isfahan, Naein Masouleh Zanjan Isfahan, Varzaneh Qom and Jamkaran Kashan, Niasar and Abyaneh Isfahan, Naein, Varzaneh Kataleh Khor Cave Kashan and Mahallat Yazd and Meybod Yazd, Meybod, Chakchak and Alisadr Cave Golpayegan, Kashan and Mahallat Kharanagh Kashan, Niasar and Mashhad e Shoormast Lake Zanjan Ardeha Zanjan Namaabroud and Kelardasht Zanjan, Takhte Soleiman Mahallat Anzali and Masouleh Zanjan, Hamedan Kandelous Masouleh and Rudkhan Castle Hamedan and Kermanshah Shahrestanak Kangavar and Kermanshah Semnan Province http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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1-Day tours 2-Day tours 3-Day tours and longer Chal Nakhjir Cave Damghan, Shahrud and Bastam Sari, Qaemshahr Mahallat, Khomein and Varamin Mashhad Golpayegan Tafresh Semnan Shiraz Namakabroud-Kelardasht Semnan and Abr Jungles Shiraz, Persepolis and Pasargadae Damavand area (rural) Qazvin Shoush, Shoushtar and Dezful Shemiranat area (rural) Qazvin and Alamut Ahwaz, Khorramshahr and Abadan Bandar Abbas, Qeshm and Vana Waterfall Kerman Hengam Alasht Sari East Azerpaijan Province Alamout and Evan Tabriz Vashi Canyon (Tangeh Vashi) Tabriz, Aras, Kandovan Taleghan Kurdestan Province Hamedan Kerman Province Yoush Baladeh Golestan Province Gorgan Anzali, Astara Ardabil, Sarein
Selecting destinations depends on the season. There are two high seasons for student tours. One which is in the middle of spring starts from the second week of April and continues for a month. In this vernal season longer national tours are very common. Hamedan and Zanjan are the most popular destinations for Far’Avaran tours in this season. Starting from the last week of April, one-day tours around Tehran and Kashan are the most popular.
In late October when the second high season starts for a month, tours of Mashhad and Isfahan are in vogue and as the weather gets colder, warmer destinations like north of Khuzestan province, Hormozgan Province, Qeshm, and Shiraz are of most interest for the students. Leisure destinations as well as those with lower temperatures like Ramsar, Ardabil and Tabriz are most welcome in the summer. In this season recreational campsites, parks, gardens and sport activities are most demanded.
Besides seasonal tours, almost every school organizes an educational tour a month. These tours whether conducted directly by the schools or in collaboration with institutes like Far’Avaran focus on subjects taught to the students during that month and intend to educate them in the same areas as they have read in their books of Mathematics, Experimental Sciences, Social Sciences, Professions and Techniques, etc. In addition to visiting research centres, factories and museums for their educational purposes, students http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 6.3 Tehran Time Museum
Note: Explanation for each photo Top left: Guidance school girls being guided at Tehran Time Museum, Tehran Top right: Guidance school girls being guided at Tehran Time Museum, Tehran Bottom left: Guidance school girl taking notes at Tehran Time Museum, Tehran Bottom right: Guidance school girls being guided at Tehran Time Museum, Tehran Source: Far’Avaran Association and Mehraban Girls’ Guidance School, Tehran
2) Transportation, Accommodation and Board
Depending on different factors including the distance, season, number of students attending the tour, family income levels and the preferences given by the schools, the means of transportation vary from normal coaches to airplanes. However, travel by train is the most popular transport mainly for its higher level of safety and relatively lower price. Otherwise, mini buses, and boats are also used occasionally.
In public schools where tours are mainly organized by the schools themselves there is a tighter collaboration between the schools and the Ministry of Education. In these cases accommodation facilities although not in ideal condition are provided by public institutions like municipalities, universities and collaborating schools in the destinations. These facilities http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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opt for even 3-4 star hotels or hotel apartments. The same story holds true when it comes to the meals. In short trips students may bring their food with. This lets them save money but it may not be possible for longer trips when it is difficult to carry perishable material for a while unless they are conserved in cans. Eating in restaurants and having a chef in company are alternatives which depend on the nature of the tour and the budget allocated to it.
Table 6.13 Far’Avaran student tours from March 2011 to March 2012 21 March – 22 September 2011 23 September 2011 – 19 March 2012
Girls Boys Girls Boys One-Day 228 87 87 73 Several-Day 117 34 275 236 345 121 362 309 Total 466 671 Note: The total volume of traffic for domestic student tours in Iran for the same period is 7 million person-nights
3) Educational student tours; Case of Scientific-Recreational Park of Technology
One of the scientific centres where a large number of student tours are taken to is the Park of Technology. It is a scientific educational complex which familiarizes the students with many scientific concepts and physical phenomena. The purpose behind creation of this park is to promote the basic science among the students. It is a recreational park which offers an environment for the students to get familiar with the scientific concepts while they play and have fun. Many of the toys in the park give an opportunity to students to test their theoretical text book learning in a tangible was as applied for practical purposes. But the difference between the park of technologies and the classroom is that in the park, one can rediscover the same law and experience its function. The experience is actually the important point. In this park, motivation is preferred to education. It tries to create the enthusiasm of “learning” rather than “teaching” the students which would be a less efficient effort with low durability and strong reaction. One way to achieve this is to accompany these experiences with good memories and fun which is actually the gist of a student tour in principle. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 6.4 Scientific-Recreational Park of Technology
Note: Explanation for each photo Top left: Student girls visiting laser harp (multi-stringed musical instrument) Top right: Student boys examining pedal powered electric generator Bottom left: Student boy examining fog light machine Bottom right: Guidance school girls playing robot soccer Source: Far’Avaran Association, website of the Scientific-Recreational Park of Technology: http://www.fago.ir/
6.3.4 Conclusion
It is clear that student tours play an important role in the educational structure of Iran and to this end domestic tourism has benefited from the magnitude of the operations at economic and social levels. From the economic point of view the tours generate valuable income and employment to the areas that host these tours. The income and employment is not confined only to the regions that receive the tours but it must be noted that the state expends vast amounts of monies for this purpose which ultimately accrues to domestic tourism. Those who find direct employment in conducting the tours must not be forgotten either. However, http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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privileged students so that there is equality in learning, sharing, and enjoying a moment in life. To this end student educational tours play a vital role in Iran’s domestic tourism. – In these tours the students learn to be independent handling their personal affairs with the guidance of the teachers even in mundane day to day activities such as shopping that includes bargaining which is an art in itself in Iran. They also learn to cope with being away from their families. – While there are many educated tour guides active in educational tours in Iran there is still a big demand for specialized tour guides who can lead the tours well. The cost for such tour guides is relatively high which is beyond the limited budget allocated to these types of tours. – One limitation is that the Ministry of Education sets maximum prices for these tours and schools are not permitted to charge the students more for better services. – While the Ministry of Education has set a rule that every 7 students need to be accompanied by a teacher, it does not allocate any budget for this extra cost imposed to the schools. So the schools need to compensate this cost by increasing the price of the tour for the same quality. In some cases when the price goes beyond the purchasing power of the parents, schools have no other option than taking less teachers on the tour. – As the Ministry of Education is not an income-generating establishment, it seeks ways to increase revenue. One way is asking schools for 1.5 to 3% of any possible profit made from educational tour. This policy in turn puts schools under more pressure in organizing these tours. – One big problem was limited access to statistics. Although as mentioned by the expert from the Ministry of Education, they have a good statistical base, receiving information regularly from all provinces, the information corresponding to the past 5-6 months was missing due to technical problems in the informatics systems. Generally the Ministry has a strict policiy in providing statistics to outsiders although they knew it was going to be used for a research of this kind. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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References
Educational Affairs Office, Ministry of Education, 2010 Operational Regulations of Student Tours and Visits, Tehran, Mehre Borna. Faripour H. Founding Director, Scientific-Recreational Park of Technology, 2012 telephone conversation, 5 March 2012. Hajiha B. Expert, Far’Avaran Association, 2012 personal conversation, 2 March 2012. Itineraries, 2011 Far’Avaran Autumn Tours, pp. 16-18, autumn 2011. Itineraries, 2011 Far’Avaran Summer Tours, pp. 12-14, summer 2011. Motahhar M., 2012 personal conversation, 5 March 2012. Please touch, 2010 Daneshgar 41, pp. 18-21, June and July 2010. Saw it, learnt it?, 2007 Daneshgar 26, pp. 14-17, October and November 2007. Serajpour, F. Vice-principal, Mehraban Girls Guidance School, 2012 interview, 25 May 2012. Soleiman Nejad, F. Expert responsible for student tours and extracurricular activities, Training and Cultural Deputy, Office of Culture and Art, 2012 interview, 23 May 2012. Secretariat of the Organizing Committee for Student Tours and Visits, Ministry of Education, 2004 Operational Regulations of Student Tours and Visits, Tehran, Mehre Borna. The night of discovery and entertainment, 2012 Danestaniha 49, pp. 97-99, 25 February 2012. Yazdani M. General Manager, Far’Avaran Association, 2012 interview, 4 March 2012. 2012 Far’Avaran Association, available: http://www.faia.ir/ (4 March 2012). 2012 Ministry of Education, available: http://pt.medu.ir/IranEduThms/theme2/cntntpge.php?pgid=6 (24 May 2012). 2012 Scientific-Recreational Park of Technology, available: http://www.fago.ir/ (25 May 2012). http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Chapter 7 ______
Japan
7.1 Domestic Tourism in Japan By Mr Tomohiko Watanabe
7.1.1 Introduction
After the rapid economic growth in the late 1950s, the level of national income and consumption levels rose substantially in Japan, and social infrastructure including the traffic and transport system started to improve significantly all over the country. Japanese domestic tourism has been rapidly popularized, backed by the change of these socioeconomic environments, and various efforts of public and private sectors such as the introduction of the cheap circular excursion train ticket which gives special rates and allows passengers to get on and off freely between specified points during a specific time period, holding Japan World Exposition at Osaka in 1970 that recorded 64 million visitors, conducting the mass advertising campaign of ‘Discover Japan’ organized by Japan National Railways to promote individual travel, developing various tourism products and new tourist destinations by travel and transportation industries and so on.
The number of Japanese domestic tourists increased steadily until reaching its peak in 1990’s, but after that it has been on a downward trend over the last two decades. In the wake of the growth of the domestic tourism market, Japanese travel needs have diversified and travel style has changed from group travel to individual travel. A large number of tourist destinations, tourist facilities and accommodations in Japan failed to adapt to the changing needs of Japanese travelers and this still remains as one of the biggest problems of Japanese domestic tourism.
On the other hand, the number of Japanese outbound departures started to increase sharply since the mid-1980s, when the rapid appreciation of the yen against foreign
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(The figure for 2011 is provisional. Japan recorded 8.6 million and ranked 30th in the world ranking in 2010). But even today, domestic tourism comprises a huge market in Japan and the number of domestic holiday overnight trip was about 186 million in 2010 (The figure of the estimated domestic holiday trips is based on multiplying the number of domestic overnight trips per capita by population).
Figure 7.1 Market scale of Japanese tourism
Note: Domestic holiday trips were based on the fiscal year. Outbound departures and inbound arrivals were on the calendar year. Figures of outbound departure and inbound arrivals in 2011 were provisional. Source: Prepared by author based on Whitepaper on Tourism and National Tourism Survey, the immigration statistics and Japan National Tourism Organization.
Figure 7.2 Domestic holiday trips (magnified picture)
Note: The figures were based on the fiscal year Source: Prepared by author based on Whitepaper on Tourism and National Tourism Survey, the immigration statistics and Japan National Tourism Organization. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 7.3 Market scale of Japanese tourism, 2010
Note: Domestic holiday trips, outbound departures and inbound arrivals were on the calendar year. Source: Prepared by author based on Whitepaper on Tourism and National Tourism Survey, the immigration statistics and Japan National Tourism Organization.
7.1.2 Overall Country Profile
1) Structure and Policies
National tourism administration
In 2007 the Japanese government had positioned tourism as one of the pillars of Japanese policy in the 21st century, by revising the old Tourism Basic Act that was enforced in 1963 and renaming the Tourism Nation Promotion Basic Law. Based on the Tourism Nation Promotion Basic Law, the Japanese government developed the Tourism Nation Promotion Basic Plan in 2008, which is the master plan for promoting a tourism-oriented destination.
Under these circumstances The Japan Tourism Agency was established in 2008 as an extra-ministerial bureau of the Ministry of Land, Infrastructure, Transport and Tourism. The Japan Tourism Agency oversees Japan's tourism administration and it takes charge of planning of tourism policy, promotion of the Tourism Nation Promotion Basic Plan, statistics, White Paper on Tourism, development of the tourism industry, promotion of inbound and outbound tourism promotion of meetings industry, development of competitive and attractive tourist destinations, conservation and development of tourism resources and fostering of human resources.
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Table 7.1 Overview of tourism nation promotion basic plan developed, 2008 (1) Promote Japanese domestic tourism, Japanese outbound tourism and inbound tourism (2) Promote sustainable tourism in order to achieve prosperity of Japanese people for the future (3) Achieve vibrant regional communities that inspires residents to take pride and love in their 1. Basic policy community (4) Contribute to enhance Japanese soft power as a peaceful nation, in order to attain an honorable position in the international community 2. Plan period 5 years * Increase the number of inbound arrivals to 10 million by 2010, with a long-term goal of equaling the number of Japanese outbound departures (the actual achievement in 2010 was 8.61 million) Increase the number of Japanese outbound departures to 20 million by 2010, with the aim of promoting mutual international exchange (the actual achievement in 2010 was 16.6 million) Increase the total amout of domestic tourism consumption to JPY 30 trillion by 2010, based upon the creation of new demand by improving the environment to ensure a smooth travel experience and 3. Basic goals for plan period offering a diverse service supported by productivity improvement in the tourism industry (the actual achievement in 2009 was JPY 25.5 trillion) Extend the average lengh of Japanese domestic holiday trip by 1 night by 2010, which represents 4 nights annually (the actual achievement in 2010 was 2.12 nights) Increase the number of international conferences held in Japan by over 50 per cent by 2011, with the aim of becoming the Asia's top international conference host country (the actual achievement in 2010 was 741 conferences) ** * The plan was revised on March 2012. ** Japan ranked second in the world according to Union of International Associations (UIA).
Table 7.1.2 Overview of tourism nation promotion basic plan revised, 2012 (1) Recovery from the Great East Japan Earthquake (2) Development of the national economy 1. Basic policy (3) Promotion of a mutual understanding throughout the world (4) Stabilization and improvement of people's life 2. Plan period 5 years Increase the total amout of domestic tourism consumption to JPY 30 trillion by 2016 (the actual achievement in 2009 was JPY 22.5 trillion) Increase the number of inbound arrivals to 18 million by 2016, with a long-term goal of increasing the number to 25 million by 2020 (the actual achievement in 2010 was 8.61 million) Achieving 45% of 'very satisfied' and 60% 'definitely coming back to Japan again' in 'Consumption Trend Survey for Foreigners Visiting Japan' by 2016 (the actual achievement in 2011 was 43.6% of 'very satisfied' and 58.4% of 'definitely coming back') Increase the number of international conferences held in Japan by over 50 per cent by 2016, with the 3. Basic goals for plan period aim of becoming the Asia's top international conference host country (the actual achievement in 2010 was 741 conferences) Increase the number of Japanese outbound departures to 20 million by 2016 (the actual achievement in 2010 was 16.6 million) Extend the average lengh of Japanese domestic trip to 2.5 nights annually by 2016 (the actual achievement in 2010 was 2.12 nights) Achieving around 25% of 'very satisfied' and around 25% of 'definitely coming back to the visited tourist destination again' in overall domestic tourist satisfactionin survey by 2016 (no record)
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Regional and local bodies
All the 47 prefectural governments in Japan have a department that undertakes tourism promotion and tourism development of the respective prefectures. These sections administer tourism information service, tourism advertisement, tourism statistics, promotion of international tourism, etc. At the municipal level, some cities and towns that try to promote tourism have a tourism section, but others lump tourism section with the commerce and industry sections.
There are also Tourist Associations or Tourism Federations in all prefectures and in some cities and towns, which support tourism administration of the respective region. These organizations are composed of local administrative officers, who double as the member of the organization, and beneficiary groups from a wide range of fields such as transport, accommodation, souvenirs, and restaurants in the region. Their main activities are acting as a liaison between local governments and stakeholders, tourism information service, holding events, etc.
National tourism organization and other bodies
In Japan, there are a number of bodies that promote domestic or international tourism for official purposes. Major bodies include The Japan National Tourist Organization, Japan Travel and Tourism Association, Japan Association of Travel Agents, etc.
The Japan National Tourist Organization (JNTO) is an independent administrative institution of the government of Japan. It was established for the purpose of attracting foreign travelers to Japan effectively, providing useful information on travel to and in Japan for foreign travelers, etc. JNTO has 13 offices around the world, through which a wide range of tourism-related promotions are carried out. Japan Travel and Tourism Association is composed of about 800 members from local governments, Tourist Associations, travel agencies, transport, etc. Its main activities are submitting a recommendation to the government, acting as a liaison between stakeholders and conducting various other activities to promote the healthy development of domestic tourism and international tourism.
Japan Association of Travel Agents (JATA) is a travel industry association that seeks to improve the quality of services provided to travelers to and from Japan. It contributes to the development of the travel and tourism industry through disseminating information, http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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2) Tourism Assets
Japan is an island nation off the east coast of Asia stretching from northeast to southwest. Its land area is 378,000 km2, 70% of which consists of mountains covered by forests, and there are 108 active volcanoes that generate many hot springs in Japan. Located in the middle latitudes, Japan has a generally mild climate and has four distinct seasons due to seasonal winds. Under these natural conditions, Japan is abundant with tourism natural resources including mountains, plateaus, marshes, lakes, valleys, waterfalls, rivers, coasts, capes, islands, animals, plants, natural phenomena, etc. The most representative of these natural resources have been designated as National Parks (30 areas) or quasi-national parks (56 areas). According to ‘Green reconstruction vision’ announced by Ministry of the Environment in May 2012, six national, quasi-national and prefectural natural parks in the earthquake-affected coastal areas of Tohoku will be a single national park to support reconstruction of the areas, and the ministry will promote ecotourism, develop a walking trail along the coastline, etc.
Japan is also abundant with tourism cultural resources including historic spots, temples and shrines, ruins of castles, gardens, and historic landscapes, etc. The most representative of these cultural resources have been designated as national treasures (216 buildings and structures and 866 fine arts and crafts) or important cultural properties (2,381 buildings and structures and 10,430 fine arts and crafts) or Important Preservation Districts for Groups of Traditional Buildings (93 areas).Especially ,a wide range of cultural resources such as animation, manga, video games, Japanese fashions, Japanese food, lifestyle of the people residing around the tourist area are well recognized for its unique tourism cultural resources.
There are a wide variety of events in Japan such as exhibitions, sporting events, art and music events, and etc, but when it comes to characteristic events in Japan it features numerous local festivals (matsuri), some of which are based on old traditions, and some of which are newly created for the purpose of revitalizing local communities. Major local festivals draw a large audience such as Aomori Nebuta Festival (3.2 million during 7 days in 2010), Hakata Gion Yamakasa (each year about 3 million during 15 days), Sapporo Snow Matsuri (2.4 million during 7 days in 2010), etc. There are also characteristic events in Japan including fireworks festivals that take place all over Japan every July or August, Comic Market, the world's largest self-published comic book fair, Tokyo Girls Collection, a large fashion event to promote Japanese fashionable street clothes targeting young women, local food festivals called ‘B-class gourmet festival’ that promote local cuisine loved by local residents, etc. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Table 7.3 World heritage sites in Japan
3) Products
Tourist sites and resorts
There are many types of tourist sites/resorts in Japan including hot springs, urban and rural tourist areas, mountain and plateaus, seaside tourist areas, amusement and theme parks, etc.
Hot springs sites are the most popular tourist’s sites among Japanese tourists of which there are over 3,000 scattered across the country. Hot springs sites were originally used for medical therapy in Japan, but now they are popular mainly for recreation and relaxation. After the bursting of the bubble economy in the mid-90s, many accommodations and tourism facilities in hot springs sites suffered from its after-effects and they also had to adapt to changes of domestic tourism market needs, from ‘group tour’ to ‘individual travel’, which still remains as one of the biggest challenges for hot springs sites.
Popular urban tourist areas in Japan are as follows: Cities and towns with rich culture and long history (Kyoto, Nara, Kamakura, etc), cities and towns with the attractive landscape preserved in its traditional way (Hirosaki, Hidatakayama, Kurashiki, etc) and vibrant metropolis (Tokyo, Osaka, Sapporo, Yokohama, Kobe, Fukuoka, etc). Tokyo, especially is http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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The importance of exchange between rural and urban areas through tourism is well recognized in Japan, because depopulation is a serious problem in many rural areas. Some rural tourism areas including Ajimu in Oita prefecture and Iida in Nagano prefecture are popular mainly among urban residents and students on their school excursions. Kawaba village in Gunma prefecture is one of the best practice where a ‘marriage city alliance’ was made with Tokyo’s Setagaya Ward in 1981 and has continued their urban rural exchange activities for over thirty years based on the unique garden city philosophy. But rural tourism is not so developed in Japan, compared with other types of tourism.
In mountain and plateau areas in Japan, there are many mountains and plateaus for climbing and trekking including Mt. Fuji and the Japan Alps, around 500-600 ski sites including Niseko (Hokkaido prefecture) and Naeba (Nagano prefecture), around 2,400 golf courses scattered in all prefectures and around 1,300 campgrounds, most of which have utility services such as electricity and showers. And one of the most popular and historically important plateau resorts in Japan is Karuizawa (Nagano prefecture), which started as the summer retreat for the foreign missionaries and the foreign advisors hired by the Japanese government in the late 19th century.
In seaside areas, there are many popular port cities and towns including Yokohama (Kanagawa prefecture), Kobe (Hyogo prefecture) and Nagasaki (Nagasaki prefecture), around 1,200 beaches suitable for bathing and many island resorts. Okinawa prefecture located in southern part of Japan is the country’s leading beach resort destination and has rich natural and cultural resources such as world-class coral reefs, unique traditional culture, etc. But Japanese seaside tourism areas are generally not so developed, although Japan consists of over 6,000 islands and is surrounded by 33,900 km coastlines. These coasts historically have been developed mainly for fishing industries, trading ports, industrial development and breakwaters construction. Especially, cruise travel is not so popularized in Japan and it has been recognized as the product mainly for the domestic luxury market.
As to amusement and theme parks in Japan, Tokyo Disney Resort (Chiba prefecture), which is a complex of two theme parks, nine hotels and shopping areas, is the most popular theme park attracting 25 million visitors in 2010. Some theme parks including Universal Studios Japan (Osaka prefecture) or Nagashima Resort (Mie prefecture) are also popular, but a lot of newly built amusement and theme parks have been shut down over the past two decades. In 2008, there were 5,448 museums, 87 zoos and 78 aquariums in Japan.
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numbered approximately 9,700 properties with 800 thousand rooms as of 2010. The number of properties and rooms of hotels has increased over the past decade. Western- style lodging were first introduced to Japan in the mid-19th century, and the hotel industry has developed and been popularized rapidly after 1970s. Now hotels, including international and domestic chains and business hotels that offer small budget room with simple amenities, can be found across the country, especially in urban areas and tourist sites. Ryokans, which are defined to have Japanese-style room with at least five rooms of a minimum surface area of 7 m2, numbered approximately 47,000 properties with 764 thousand rooms as of 2010. The number of properties and rooms of ryokans have decreased over the past decade. Ryokan is Japanese traditional accommodation and is located mainly in tourist sites, especially in hot springs sites. Although there are many different kinds of ryokan varying in size, cost and style, traditional ryokan offers some common features such as a room with straw mat flooring, Japanese style bedding (futon) for sleeping, unique fee structure charging for one night’s stay with two meals, etc.
There are also many kind of accommodation including a budget family-run accommodation with Japanese style room (minsyukus), pensions, a budget family-run accommodation with Western style room, temple lodgings (syukubo) located within a temple offering a vegetarian meal, etc. These accommodations usually belong to ryokan or cheap lodging house under the Ryokan business Law, depending on the structure of their facilities.
Restaurants
Japanese food service industry has rapidly developed after the introduction of Family Restaurants (family style restaurants that offer family-oriented service and allow children) Skylark and the first Kentucky Fried Chicken opened in 1970. After that, eating out became rapidly popularized among Japanese and it came to be regarded as one of entertainment. Since the gourmet movement in the mid-1980s, many types of restaurants from fast food to foreign cuisine have opened, a large number of gourmet guidebooks have been published and a lot of TV cooking shows or TV programmes introducing restaurants have been broadcast. In 2007 for the first time the Michelin Guide to Tokyo was published in a non- western country and Tokyo was awarded the world’s most Michelin stars for its restaurants. Gastronomy is one of the biggest motivations for the Japanese domestic tourism market and it still creates demand in some parts of the sluggish domestic market.
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volume of sales on eatery business in Japan was about JPY 16 trillion in 2010. The number of eateries was approximately 725,000 and the number of persons engaged in eatery business was 4 million in 2010 (63,000 restaurants, 338,000 specialized restaurants, and 33,000 noodle shops, and 29,000 sushi restaurants as of July 2009).
Health, sanitation and public order
The average life expectancy for Japanese males was 79.64 years and for females 86.39 years in 2010, representing one of the highest rates in the world. The average percentage of the population 65 or older was 23.0% in 2010.These increases in life expectancy and rapidly aging population have resulted in a rise in medical costs for the elderly, and this is the major reason for the increase in national medical care expenditures, which is one of the biggest issues in Japan. Access to improved water sources and sanitation are universal in Japan. Japan achieved high standards of hygiene and sanitation with advanced technologies for water supply methods, and sewer system, etc.
Although Japan often experiences natural disasters such as earthquakes and typhoons, Japan has good public safety and order. In 2010, crime cases known to the police amounted to 1.59 million (cases of murder was 1,100), crime cases known to the police per 100 thousands population was 1213.4 and amount of cases cleared up was 31.4%.
Handicrafts and souvenirs
Giving gifts is one of the traditional Japanese customs, and giving family, friends and co- workers souvenirs (omiyage) after returning from a trip has been recognized as etiquette of the society or a part of the delights of travel. Against this background, many kinds of regional goodies such as handicrafts, food products, confectionery and alcoholic beverages have been developed and sold as souvenirs in Japan. Especially, agricultural and marine products are sold not only at souvenir shops but also at farmer’s markets located along the main roads, morning markets (asa-ichi) in the tourist sites and roadside stations (michi no eki) located along the general roads. Nowadays these kinds of food for daily use are also popular as souvenir among domestic tourists, because in Japan there is growing concern about the safety of food products and local food.
4) Transport Structure and Network http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
The total volume of passenger transport was 1.37 trillion passenger-kilometers in 2009. Motor vehicles (buses, passenger cars, light vehicles and trucks) accounted for 65.6% of the total volume, railways 28.7%, airlines 5.5% and passenger ships 0.2%. The volume of
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passenger transport and the proportion of each mode have shown little change over two decades.
The road network of the country covered 1.2 million kilometers (80.4% are paved), comprising national expressways (7,803 km), general national highways (54,981 km), prefectural roads (129,366 km) and city, town and village roads (1,018,101 km) as of April 2010. The total number of passenger cars owned in Japan was 58.7 million in December 2011 and the passenger car ownership rate is higher in the rural and suburban areas with little public transportation. In recent times, many local bus services went bankrupt because of depopulation, and the bus passenger numbers have continued to decline especially in the rural and suburban areas.
The rail system including railways and tramways covers 27,443 km across the country as of July 2011,operated by Japan Railway Group (JR) that owns 19,982 km (72.8%) connecting most parts of Japan, and many private rail companies that own 7,461 km (27.2%) especially in and around the metropolitan areas. Japan’s high-speed train operated by four JR companies is known as ‘bullet train’ or shinkansen, and its network linking major cities expands to 2387.8 km as of 2011. The private lines including subways are important transport mode for urban commuter. The total number of railway passengers has stagnated after the 1990s, and today many local private rail companies are running at a deficit.
In 2011 Japan had 98 airports including Tokyo International Airport (Haneda Airport) which is the busiest airport in Japan, and there are 217 domestic airline routes comprising of trunk lines (17 routes) and local lines (200 routes). The total number of passengers traveling on scheduled domestic flights was 84.4 million in 2010, and at present it is decreasing, especially in local lines. The domestic air travel is operated by JAL group (Japan Airlines), ANA group (All Nippon Airlines) and several smaller airlines including Skymark Airlines. Although Japan has seen little growth in LCC flights until quite recently, three new LCCs entered the domestic market in 2012: Peach Aviation (a joint venture between ANA and First Eastern Investment Group), AirAsia Japan (a joint venture between AirAsia and ANA) and Jetstar Japan (a joint venture between Jetstar, JAL and Mitsubishi Corp).
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Figure 7.4 Major airports in Japan Table 7.4 Number of passengers*
*) Number of passengers traveling on scheduled domestic flights by airline route (FY2009) Source: The Statistical Survey on Air Transport, Ministry of Land, Infrastructure, Transport and Tourism.
5) Budgets
The 2011 budget allocated to the Japan Tourism Agency’s project was JPY 10.15 billion, a year on year drop of 19.8%. The government places priority on international tourism, hence 85% of funding was allocated to attracting international visitors to Japan. The remaining 15% was modestly spread across several tourism initiatives. Though the budget for domestic tourism is limited, the government is focusing on four items such as regional development through tourism (as is shown in table 7.5 below), developing better human resources (3), changing the timing of national holidays (4) and establishing better tourism statistics useful for marketing research purposes (5).
For 2012, the budget was JPY 10.34 billion, a year on year increase of 1.9%. And in October 2012, the additional supplementary budget worth JPY 2.6 billion was implemented mainly for the Great East Japan Earthquake recovery. The government seems to be prioritizing the establishment of better tourism statistics and the Great East Japan Earthquake recovery. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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0.8 billion as of FY2011), but major tourism projects are carried out by the Japan Tourism Agency.
Table 7.5 Budget allocated to the Japan Tourism Agency’s project FY2012 FY2011 (Enacted) (Actual) Items Budget Budget (JPY YoY (JPY YoY million) million) (1) Program to attract 30 million international 8,290 -4.0% 8,634 -22.7% visitors to Japan (Phase 1) (2) Renewal and revitalization of regional society 343 -27.3% 472 -18.3% based on tourism (3) Tourism human resource development 124 -43.9% 221 342.0% (4) Creating and promoting environments 80 -2.4% 82 192.9% conducive to work-life balance (5) Establishment and development of tourism 887 86.7% 475 43.9% statistics (6) Other administrative costs 281 6.4% 264 -46.5% (7) Budget speciffically for the Great East 334 - Japan Earthquake recovery and reconstruction Total 10,339 1.9% 10,148 -19.8%
6) Marketing
The Japanese government conducts promotion primarily to attract international visitors since 2003. And the government doesn’t show a clear market segmentation of domestic tourism in the Tourism Nation Promotion Basic Plan, but some segments such as the elderly, retired worker, baby boomer generation (born between 1947 and 1949), individual traveller, small group traveller and the disabled are mentioned as target group in several projects of the plan. After the Great East Japan Earthquake on 11 March 2011, the government began the campaign under the cooperation between public and private sector to promote domestic travel to eastern Japan including Tohoku area. This campaign tries to promote domestic tourism as a whole, and it prioritizes some specific domestic travel such as tours for young people, tours for long stay and volunteer tours. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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individual tourist sites, facilities and accommodations. The largest domestic tourism promotion at the regional level is the ‘Destination Campaign’ carried out by Japan Railway Group and local governments, and it conducts nationwide promotion over three months by using JR network. Domestic travelers tend to travel widely (across prefectures) and therefore local governments often combine resources to run joint marketing campaign.
Because the Internet plays an increasingly important role in attracting domestic travelers, the Japanese government and local governments use their website to provide information. These days, due to the popularity of a cellular phone and a mobile handheld device, the Japanese government and some local governments develop new information service system to attract travellers using social networking services, location-based services, augmented reality, etc.
7) Travel Industry Structure
The Travel Agency Law requires travel agencies to register their name in order to carry out business. The registration is classified into four categories, ‘Type 1 Travel Agency’, ‘Type 2 Travel Agency’, ‘Type 3 Travel Agency’ and ‘Travel Sub-agency’. ‘Travel Sub-agency limited in Tourism Zone’ was newly created in 2007 in order to promote local tourism by deregulating the Travel Agency Law.
Table 7.6 Classification of Japanese travel agencies by the Travel Agency Law
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was JPY 6.68 trillion (3.6% increase YoY), domestic travel accounted for JPY 3.75 trillion and overseas travel JPY 2.87 trillion. Of this volume, around 80% of the amount is occupied by the Type 1 Travel Agency which makes up less than 10% of the number of agency. JTB Corp holds top share in terms of business volume and the top 10 travel agencies cover approximately 50% of the entire business volume. In these days, online travel agencies have grown rapidly with the spread of the Internet and Rakuten Travel ranked 2nd share in term of domestic travel business volume in 2010.
8) Socio-economic Data
GDP and growth rate
Japanese economy has seen dramatic growth after 1950s and it became a key factor in the accelerating growth of the Japanese tourism market. Butthe growth rate has been slow after the bursting of the bubble economy in the mid-90s. According to the National Accounts by the Cabinet Office of Japan, nominal GDP was JPY 468.1 trillion (2.8% decrease YoY), real GDP was JPY 506.8 trillion (0.9% decrease YoY) and GDP deflator was 2.0% decrease YoY in 2011. Japanese economy showed visible signs of recovery in early 2011but the Great East Japan Earthquake on March 11 has severely affected the Japanese economy. The earthquake caused the wide range of serious damages such as human casualties, material damage, cutting off the supply chains, an increase in bankruptcies and unemployment, an unstable power supply, a mood of self-restraint among Japanese people, etc. Afterward the economy has turned upward in summer 2011.
Figure 7.5 Real GDP and growth rate (JPY trillion)
Note: The data from 1955 to 1980 is according to National Accounts in 1998. Real value is based on year 1990. The data from http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Labour market and working hours
Unemployment rate has begun to rise after 1990s, when the economic bubble burst and Japanese traditional lifetime employment system started to break down. Labour force population has decreased after reaching its peak in 1998 (68 million people) and labor force participation rate has also been on a declining trend on the back of fewer children being born and the elderly age group expanding.
In these days the annual working hours of regular employee is on a downward trend because of the increase of the ratio of part-time workers. The annual working hours of regular employee was 1,747 hours and that of full-time employee was 2,006 hours in 2011. The annual working hours of full-time employee have not changed much for almost two decades, and it seems that reducing working hours of full-time employee is one of the most important factors to accelerate growth of the Japanese tourism market.
Figure 7.6 Labour force status
Note: Okinawa prefecture was not included from 1953 to 1972 Source: Labour Force Survey by Ministry of Internal Affairs and Communications http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 7.7 Annual working hours
Note: Regular employee includes part-time workers Source: Monthly Labour Survey by Ministry of Health, Labour and Welfare
Japanese employees were granted an average of 18.1 days of paid holidays in 2010, but the number of days taken was 8.9 days, or 49.3%. The number of days taken has not changed much for almost three decades, and it seems that increasing rates of annual paid holiday is one of the most important factors to accelerate growth of the Japanese tourism market.
Figure 7.8 Average number of annual paid holiday per person
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Household budgets
According to Household survey (Family Income and Expenditure Survey) by Ministry of Internal Affairs and Communication, average number of persons per two-or-more person worker’s household for 2011was 3.42, average number of earners was 1.66 and age of household heads was 47.3. Average actual income per two-or-more person worker’s household for 2011 was JPY 510,117, average disposable income was JPY 420,500 and average consumption expenditure was JPY 308,826. Consumption expenditure for culture and recreation in 2011 was JPY 29,061, which accounts for 10.3% of total.
Table 7.7 Consumption expenditures for two-or-more-person households, 2011 YoY (%) Actual figures (JPY) Nominal Real Two-or-more-person households Consumption expenditures 282,955 -2.5 -2.2 Food 66,901 -1.0 -0.6 Housing 18,872 3.8 4.1 Fuel, light and water charges 21,954 0.0 -3.2 Furniture and household goods 10,071 -1.9 3.9 Clothing and footwear 11,381 -1.0 -0.7 Medical care 12,690 1.4 2.1 Transportation and communication 36,508 -6.3 -7.4 Education 11,631 -0.9 1.2 Culture and recreation 29,061 -8.8 -5.0 Other consumption expenditures 63,887 -2.8 -2.5
Information and communication services
In Japan, the Internet population ratio has increased in a rapid pace and FTTH (Fiber to the Home) subscriptions to optical fiber networks have became increasingly popular. And the number of cellular phone subscription overcame that of fix-line telephone in 2000 and the smart phone market has revitalized recently. Under these circumstances, new information services such as social networking services or global positioning system (GPS) appeared and they have radically transformed the flow of information among people. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 7.9 Trends of internet and broadband subscriptions
Note: Internet users exclude persons aged under 7 years old Source: Whitepaper Information and Communications in Japan by Ministry of Internal Affairs and Communication
Figure 7.10 Trends of cellular phone subscription
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9) Socio-cultural Data
Demography
The Japanese population is approximately 128.1 million as of 2010, and birthrates are falling while the aging population is growing. The post-war baby boomers (born between 1947 and 1949) are estimated to be about 8 million people and make up a large part of the market. Although their children's generation also forms the volume zone of the population, the population of the generation after them is decreasing.
Growth rate of population turned to negative in 2005 for the first time after the war. Japan is one of the fastest aging countries because of its longevity and falling fertility rate. Growing senior population in age 65 or more comprised 23% in 2010. In regional perspective, Kanto (including Tokyo), Chubu and Kinki have nearly 70% of the total population. Large cities like Tokyo, Nagoya and Osaka are the important source markets for the domestic tourism. In 1960s a number of young Japanese people moved from the countryside to urban areas in search of jobs in 1960s and this caused the serious depopulation problems in Japanese society.
Figure 7.11 Population and population growth (million, %)
Note: The population censuses in Japan have been conducted almost every five years Source: Population Census by Ministry of Internal Affairs and Communications: 1945-2010, National Institute of Population and Social Security Research, Population Projections for Japan: 2010-2055 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 7.12 Population by age group (%)
Note: The population censuses in Japan have been conducted almost every five years Source: Population Census by Ministry of Internal Affairs and Communications: 1945-2010, National Institute of Population and Social Security Research, Population Projections for Japan: 2010-2055
Figure 7.13 Population pyramid, 2010 (age)
Source: Population Census by Ministry of Internal Affairs and Communications http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 7.14 Population by prefecture
Note: Using Google Ajax API Visualization API for making map Source: Population Census by Ministry of Internal Affairs and Communications
Calendar of national and local holidays
In Japan the Public Holiday Law determines national holidays. There are 15 national holidays but no government-recognized local holidays. With the introduction of the Happy Monday System in 1999, some Mondays become a national holiday when a national holiday falls on a Sunday. Major long vacations are Year-end and New Year's Day holidays, Golden Week, Bon Festival holidays and summer holidays. The new school year starts in April in Japan. Though the vacation length differs by the region or the school standard, most children have summer vacation from July 20 to end of August, winter break from December 25 to January 7, and spring vacation from March 20 to April 5. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Table 7.8 National holidays in Japan Name Date Meanings Celebrate the start of new year. The largest annual event of the New Year’s Day 1-Jan year. Japanese usually visit the shrines or temples for praying the year's happiness. Celebrateand embrace the youth who are becoming grown up Coming-of-age day The second Monday of January and stepping out on one’s own feet. National Foundation Day 11-Feb Commemorate national foundation and foster patriotic spirit. Vernal equinox day Spring Equinox Day Praise nature and living things. (Around March 21) Shōwa Day 29-Apr A day in honor of the late Emperor. Celebrate the enforcement of the Constitution of Japan and Constitution Memorial Day 3-May hope for national growth. Get in touch with nature as well as appreciate its blessings, and Greenery Day 4-May nurture respect for the environment. Children’s Day 5-May Value children’s individuality and wish for their happiness. Appreciate bounty of the sea and wish for the prosperity of Marine Day The third Monday of July maritime state Japan. Appreciate the aged people who have devoted many years to Respect-for-the-Aged Day The third Monday of September society and celebrate their longevity. Autumnal Equinox Day Autumnal Equinox Day Honor ancestors and commemorate the deceased. (Around September 23) Encourage participation in sports and nurturing of a sound Health & Sports Day The second Monday of October mind and body. Culture Day 3-Nov Celebrate love of freedom, peace and culture. Labor Thanksgiving Day 23-Nov Recognize and respect people's labor and productivity. The Emperor’s Birthday 23-Dec Celebrate the Emperor’s birthday.
Table 7.9 Major long vacations in Japan Name Date Everyone usually end work on Dec 28 or 29, and returntoworkonJan4. Year-end and New Year's Day holidays During this period, people who live away from home will return to celebrate New Year's Day with their family. April 29 to around May 5. Many people tend to take days in between Golden Week national holidays off and make it a long holiday. Golden Week is the period when a lot of people travel and return home. Around Aug 15. Bon is a big holiday, based on the age-old custom of Bon Festival holidays ancestral worship and the Buddihsm festival. It is believed that the ancestral spirits return home to spend time with their family during ghis period. Mostly concentrated in July and Aug. Summer holidays for the children Summer holidays usually start near the end of July and last about six weeks. Their parents commonly take Bon Festival holidays for a week as their summer holidays.
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7.1.3 Domestic Tourism Profile
1) Domestic Tourism Data
Number of visitors, evolution and trends
Japanese domestic tourism market started to expand substantially after the late 1950s and increased steadily until reaching its peak in 1990s, but after that it has remained sluggish over the last decade. Japanese domestic tourism market is considered on a downward trend in the long run. The average number of Japanese domestic overnight trips per capita was estimated to be 2.64 (8.9% decrease YoY) and the average number of Japanese day trips per capita was 2.73 (11.3% decrease YoY) in 2010.
Regarding domestic holiday overnight trips, the volume is also considered on a downward trend. The average number of trips per capita was estimated to be 1.45 (4.7% decrease YoY) and the average nights stayed was 1.58 (0.4% decrease YoY) in 2010, according to National Tourism Survey by the Japan Tourism Agency. The participation rate of domestic holiday overnight trips was estimated to be 43.1% and the average number of trips was 1.0 per capita in FY2010, according to the annual survey conducted by Japan Travel and Tourism Association.
Accommodation Survey conducted by the Japan Tourism Agency shows that total number of domestic overnight stays was estimated to be 322.8 million in 2010 (The coverage of the survey was extended and the sample sizes changed in April 2010). The breakdown by facility type was 38.1% for business hotels, 24.8% for ryokans, 17.7% for resort hotels (located in hot spring sites or resort areas) and 16.5% for city hotels (with large facilities located in urban area).
Figure 7.15 Market scale of domestic holiday trip http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Note: The figures were based on the fiscal year Source: Prepared by author based on Whitepaper on Tourism and National Tourism Survey
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Table 7.10 Number of domestic trips per capita, 2010
Source: Prepared by author based on National Tourism Survey
Table 7.11 Average number of trips and nights stayed of domestic overnight trip, 2010
Source: Prepared by author based on National Tourism Survey
Figure 7.16 Participation rate and average number of domestic overnight holiday trip (times, %) http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Note: Figures cover person over 7 years old Source: Annual Survey conducted by Japan Travel and Tourism Association
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Figure 7.17 Total number of domestic overnight stays, 2010 (million)
Note: The coverage of survey was extended since April 2010, and the YoY from January to March cannot be compared. Source: Accommodation Survey
Table 7.12 Total number of domestic overnight stay by facility type, 2010 Total number of domestic overnight stay (million） YoY Total 322.8 14.1% Ryokans 80.2 3.5%
Resort hotels (located in hot spring 57.1 8.1% sites or resort areas) Facility type Business hotels 122.9 22.6%
City hotels (with large facilities 53.1 8.8% located in urban area)
Note: The coverage of survey was extended since April 2010, and the YoY can used as a rough guide Source: Accommodation Survey
Economic contribution
In 2010, it is estimated that JPY 23.8 trillion (5.9% decrease YoY) were spent on travel in Japan. This figure was made of JPY 16.1 trillion (6.9% decrease YoY) spent on domestic overnight trip by Japanese nationals (JPY 9.7 trillion for holiday trips, JPY 3.8 trillion for visiting friends and relatives, etc and JPY 2.6 trillion for business trips), JPY 5.1 trillion (7.3% http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 7.18 Amount of the tourism market in Japan, 2010
Source: National Tourism Survey conducted by The Japan Tourism Agency
Figure 7.19 Amount of the tourism market in Japan, 2005-2010
Source: National Tourism Survey conducted by The Japan Tourism Agency
The direct effects of inducing added value were worth JPY 11.5 trillion or 2.4% of GDP. Travel spending created 2.29 million jobs, equivalent to 3.6% of the number of all employees. Tax revenue effects were worth JPY 1.8 trillion or 2.3% of the amount of all http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
The ripple effects on production by travel spending in 2010 were worth JPY 49.4 trillion or 5.5% of GDP, based on the 2005 input-output table. The ripple effects of inducing added
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value were worth JPY 25.2 trillion or 5.2% of nominal GDP. Travel spending also created 4.24 million jobs, equivalent to 6.6% of the number of employees. Tax revenue effects were worth JPY 4.0 trillion or 5.3% of the amount of national and local revenue.
Table 7.13 Amount of the tourism market by expense item, 2010 (JPY billion)
Source: The Japan Tourism Agency ‘National Tourism Survey’
Seasonality index
Domestic overnight holiday trip peaked in August (16.9%), followed by May (10.0%), September (9.7%) and March (9.3%), according to the annual survey conducted by Japan Travel and Tourism Association. Winter season (from December to February) was the least popular periods for domestic overnight trip. The breakdown of seasonality of domestic overnight holiday trip by purpose of visit shows that every purpose of visit peaked in August, especially for summer and winter retreat (66.2%) and for outdoor recreation (35.1%). Outdoor recreation (13.2%) and sightseeing (12.3%) were popular in May. Outdoor recreation (19.9%) and sport activity (11.9%) were popular in July. Hobby, learning and research (12.5%) and outdoor recreation (11.9%) were popular in September. Relaxation (10.8%) and sport activity (10.7%) were poplar in March. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Table 7.14 Seasonality of domestic overnight holiday trip by purpose of visit
Source: The annual servey conducted by Japan Travel and Tourism Association
Figure 7.20 Seasonality of domestic overnight holiday trip (%)
Source: Annual survey conducted by Japan Travel and Tourism Association
Employment
In 2010, it was estimated that the direct effects of travel spending (JPY 23.8 trillion) created 2.29 million jobs in the travel and tourism related industry, equivalent to 3.6% of the number of all employees. According to the ripple effects on production, the employment inducement effect was 4.24 million.
According to TSA table 7.15, there were 4.46 million people engaged in tourism industry in 2010. The breakdown of them shows that 1.12 million people in restaurant industry, 84 thousand people in sport and entertainment, 62 thousand people in accessorial service, 43 http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Table 7.15 Employment of tourism industry, 2010 (10 thousand persons, 10 thousand hours)
Source: The Japan Tourism Agency, TSA table 7.
Catchment areas
Accommodation Survey shows that total number of domestic overnight holiday stays by regions in 2010 was 6.6% for Hokkaido Region (6.7% decrease YoY), 9.2% for Tohoku Region (6.7% increase YoY), 26.0% for Kanto Region (18.6% increase YoY), 19.7% for Chubu Region (13.8% increase YoY), 15.7% for Kinki Region (22.1% increase YoY), 5.6% for Chugoku Region (14.4% increase YoY), 2.8% for Shikoku Region (20.1% increase YoY) and 14.5% for Kyusyu and Okinawa Region (13.8% increase YoY).
The annual survey conducted by Japan Travel and Tourism Association shows that in FY2009 most of domestic tourists tend to travel within the same region, especially from Hokaido Region (75.4%), Tohoku Region (58.9%) and Kyusyu and Okinawa Region (65.1%). And many tourists from Koshinetsu Region travel to Kanto Region (24.5%), from Tohoku Region to Kanto Region (22.8%), from Chubu Region to Kansai Region (22.5%) and from Chugoku Region to Kansai Region (22.3%). http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Table 7.16 Total number of domestic overnight holiday stays by region (million, YoY)
Note: – The coverage of survey was extended since April 2010 and the YoY can be used as a rough guide – Chubu Region includes Niigata, Yoyama, Ishikawa, Fukui, Yamanashi, Nagano, Gigu, Shizuoka and Aichi Source: Accommodation Survey
Table 7.17 Origin-Destination(O-D) matrix for domestic overnight holiday stays (%)
Note: Koshinetsu Region includes Niigata, Yamanashi and Nagano. Chubu Region includes Shizuoka, Aichi, Gifu, Toyama, Ishikawa and Fukui Source: The annual survey conducted by Japan Travel and Tourism Association
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Accommodation
1. Number of units According to the survey conducted by Ministry of Health, Labour and Welfare, ryokan had 46,906 units (4.2 decrease YoY) with 764 thousand rooms (3.5 decrease YoY) and hotel had 9,629 units (0.6 decrease YoY) with 802 thousand rooms (0.5 increase YoY) in FY2010. During the decade between FY2000 and FY2010, number of units and rooms of ryokan has been on a downward trend and that of hotel has been on an upward trend.
According to Accommodation Survey conducted by the Japan Tourism Agency, it was recognized that there were 54,297 units as of December 2010, comprising of 1,100 units with more than 100 employees, 3,763 units with 30 to 99 employees, 7,415 units with 10 to 29 employees and 42,019 units with none to 9 employees.
Table 7.18 Number of facilities of ryokan and hotel Ryokan Hotel FY Number of Increase and Number of Increase and Number of room YoY Number of room YoY facilities decrease facilities decrease 2000 64,831 949,956 △ 1,935 △ 2.9 8,220 622,175 110 1.4 2004 58,003 870,851 △ 1,751 △ 2.9 8,811 681,025 125 1.4 2005 55,567 850,071 △ 2,436 △ 4.2 8,990 698,378 179 2.0 2006 54,070 842,493 △ 1,497 △ 2.7 9,165 721,098 175 1.9 2007 52,259 821,870 △ 1,811 △ 3.3 9,427 765,482 262 2.9 2008 50,846 807,697 △ 1,413 △ 2.7 9,603 780,505 176 1.9 2009 48,966 791,893 △ 1,880 △ 3.7 9,688 798,070 85 0.9 2010 46,906 764,316 △ 2,060 △ 4.2 9,629 802,060 △ 59 △ 0.6 00/10 △ 17,925 △ 27.6 1,409 17.1
Source: Ministry of Health, Labour and Welfare
2. Formal vs. informal sector According to the annual survey conducted by Japan Travel and Tourism Association Accommodation, most used type of accommodation for domestic overnight holiday trip in FY 2009 was hotel and business hotel (46.1%), followed by ryokan (30.6%), home of friends or relatives (5.0%), staying in a car or a ship (3.6%) and government- run public accommodation (3.1%). It seems that formal sector type accommodation is mainly used for domestic overnight trips. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 7.21 Type of accommodation used for domestic overnight holiday trip, FY2009 (%)
Source: The annual survey conducted by Japan Travel and Tourism Association
3. Occupancy ratio According to Accommodation Survey, the national average of room occupancy rate was 59.8 (0.1 decrease YoY) in 2010. The breakdown by facility type was 70.5% for city hotels (0.6% decrease YoY), 63.6% for business hotels (3.6% decrease YoY), 51.9% for resort hotels (1.4% decrease YoY) and 48.2% for ryokans (1.2% decrease YoY). Looking at the rate by season, August (69.3%) was highest and January (50.3%) was lowest.
The national average of occupancy ratio to capacity (dividing total number of guests by total capacity) was 43.2% (0.4% decrease YoY) in 2010.
The ratio of non-Japanese guest to total number of guest was 7.4% (1.4% increase YoY) in 2010. The breakdown by facility type was 19.7% for city hotels (3.5% increase YoY), 5.6% for business hotels (1.0% increase YoY), 5.2% for resort hotels (1.1% increase YoY) and 2.4% for ryokans (0.4% increase YoY). Looking at the rate by season, Kanto Region (12.6%) was highest and Shikoku Region (1.3%) was lowest. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Table 7.19 Room occupancy rate and occupancy ratio to capacity, 2010
Note: The coverage of survey was extended since April 2010, and the YoY from Jan. to Mar. cannot be compared Source: Accommodation Survey
Table 7.20 Ratio of non-Japanese guest, 2010 (%)
Source: Accommodation Survey http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Transport
According to the annual survey conducted by Japan Travel and Tourism Association Accommodation, most used type of transportation for domestic overnight holiday trip in FY 2009 was owner- driver car (54.9%), followed by railway (JR) (21.1%), chartered bus (17.4%), airplane (10.2%) and railway (other private railways) (9.8%). Owner-driver car accounted for more than half of used transportation for domestic overnight trips.
Figure 7.22 Type of accommodation used for domestic overnight holiday trip, FY2009 (%)
Source: The annual survey conducted by Japan Travel and Tourism Association
Travel trade catering to domestic tourism and bookings
The number of travel agencies in Japan was 10,240 companies as of April 2011. When divided into the categories, there were 738 Type 1 Travel Agency, 2,785 Type 2 Travel Agency, 5,837 Type 3 Travel Agency and 880 Travel Sub-agency. Most agencies are small/medium-size enterprises.
According to Japanese Domestic Travel Market Report 2011 by Japan Travel Bureau
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Figure 7.23 Travel reservation methods for domestic tourism
Source: Japanese Domestic Travel Market Report 2011, Japan Travel Bureau Foundation
Figure 7.24 Travel reservation methods (package tours and FIT) http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Source: Japanese Domestic Travel Market Report 2011, Japan Travel Bureau Foundation
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1. Domestic Tourist
Age, gender and travel companion
According to the annual survey conducted by Japan Travel and Tourism Association Accommodation, the most frequent participants for domestic overnight holiday trip in FY2009 were females in their 20s (57.0%), followed by male in their 40s (56.7%), female in their 30s (52.6%), male in their 30s (50.4%), male in their over 50s (50.1%), female in their over 50s (48.1%), female in their 40s (46.3%) and male in their 20s (41.2%). The rate of male in their 20s dropped 12.9 points from FY2000 to FY2009.
Figure 7.25 Participant rate of domestic overnight holiday trip by age and gender
Source: The annual survey conducted by Japan Travel and Tourism Association
Examining the travel companion in FY2009, the share of those travelling with family was 46.0%, with friends/acquaintances was 24.9%, with family and friends/acquaintances was 12.5%, alone was 5.4%, with fellow employees was 4.0% and with member of local group, etc was 3.2%. The average number of travel companion in FY2009 was 7.7 persons. The breakdown was 36.0% for 2 to 3 persons, 26.3% for 4 to 5 persons and 15.5% for 6 to 10 persons. http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 7.26 Travel companion, FY2009
Source: The annual survey conducted by Japan Travel and Tourism Association
Figure 7.27 Number of travel companion, FY2009
Source: The annual survey conducted by Japan Travel and Tourism Association
Purpose of visit
Japanese Domestic Travel Market Report 2011 shows that holiday trip was the largest share (47.3%) in 2010, followed by visiting family, friends, (VFR), etc. (21.7%), business trip http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Figure 7.28 Market share of domestic trip, 2010
Source: Japanese Domestic Travel Market Report 2011, Japan Travel Bureau Foundation
The annual survey conducted by Japan Travel and Tourism Association Accommodation shows that the largest share of the purpose of travel for domestic overnight in FY2009 was relaxation (36.8%), followed by sightseeing (30.6%), sport activity (9.3%), hobby, learning and research (7.7%), festival and event (4.43%), summer and winter retreat (3.5%), outdoor recreation (2.3%) and honeymoon (0.3%).
The survey also shows that the largest share of the purpose of NOT travelling for domestic overnight in FY2009 was not having enough time (38.6%), followed by not having enough money (27.7%), passing time without feeling any inclination to travel (17.7%) and anxiety about health (14.0%).
Figure 7.29 Purpose of travel (Domestic overnight holiday trip), FY2009 (%) http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
Source: The annual survey conducted by Japan Travel and Tourism Association
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Figure 7.30 Purpose of NOT travelling (domestic overnight holiday trip), FY2009 (%)
Source: The annual survey conducted by Japan Travel and Tourism Association
2. Measurement of Volume and Distribution of Domestic Tourism
Tourism Satellite Accounts
In 2003, the Japanese government launched Tourism Satellite Accounts (TSA) and National Tourism Survey to specify the tourism expenditure and economic impact. TSA are created annually based on the data collected by National Tourism Survey. In 2011, the government improved the precision of measurement by using system of national account (SNA) and prepared TSA table 1 to 7 (table 8 to 10 will be prepared afterwards).
National Tourism Survey is conducted annually by the Japan Tourism Agency. This survey collects data on the status of domestic and overseas trip by the Japanese nationals and the amount of travel consumption. Japanese nationals randomly selected from the Basic http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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Household surveys Ministry of Internal Affairs and Communications conducts Household survey (Family Income and Expenditure Survey) in order to obtain basic data of people's income, expenditure, savings and debts. The sample is selected from every Japanese household by using three stratified sampling, and the sample size is 9,000 households including single-person- households (except students). The survey is conducted every month. The results of the Survey are divided into the volume of income and expenditure and the volume of savings and liabilities. The volume of income and expenditure is divided into the part for two-or- more-person households, for one-person households and for all households. Survey items related to tourism are accommodation services and package tour.
Accommodation establishment surveys In 2007, the Japan Tourism Agency launched Accommodation Survey to specify the overnight trips in Japan. Accommodation Survey is conducted by mail-survey on a quarterly basis (4 times per year) and collects data on the status of domestic overnight trips by the Japanese nationals and non-Japanese travellers. At the beginning the sample was limited to all accommodations with more than 10 employees (about 10,000 facilities), but one-third of all accommodations with 5 to 9 employees (about 10,000 facilities) and one-nine of all accommodations with none to 4 employees (about 30,000 facilities) were added to the sample in 2010. Main survey items are type of facility, number of rooms, room capacity, number of employees, number of nights, number of visits, occupancy rate, etc.
Prefectural-level Tourism statistics using the standard framework laid down by the government In 2010, the Japan Tourism Agency designed the standard framework for prefectural-level tourism statistics, and 45 out of 47 prefectures introduced this framework as of May 2012. The survey is conducted by prefectures in cooperation with municipalities and collects data on a status of visitors within their respective prefectures on a quarterly basis (4 times per year). Main survey items are a number of visitors, the amount of travel consumption, the number of tourism assets, tourism sites and events where travellers visit frequently, etc.
7.1.4 Case Study: Japanese Domestic Tourism Development
Japanese domestic tourism has well developed over time, as is shown above in the overall country profile. The history of Japanese domestic tourism development will provide an insight into how the healthy and sustainable development of domestic tourism should be
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Japanese domestic tourism started to expand substantially after the rapid economic growth in the late 1950s, and at that time when travelling was considered to be one of the largest
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luxury, transport industries and travel agencies played a particularly important role to boost the domestic market growth by providing domestic tourists with an easy and affordable way to travel around the country. A lot of tourism facilities and accommodations started to be built across the country. Japanese views of leisure also started changing, and people have come to think that free time was not just the interlude between work and work but something to be used proactively. During this period, Japanese domestic tourism had rapidly become popularized and people have experienced the joy of travelling.
When the economy has stabilized and standard of living has well improved in the 1980s, Japanese recreation and leisure became more personalized and people spent lavishly on travelling around country and overseas. In the late 1980s, growing domestic demand was expected to play the key role in economic expansion of the country, and domestic tourism development was positioned as one of the important policies of the government. The government enacted the Law for Development of Comprehensive Resort Areas in 1987, in order to promote domestic tourism and improve the lifestyle of the Japanese people by developing comprehensive resort areas. The law encouraged the nationwide boom in construction of resort condominiums and large-scale facilities such as ski sites, golf courses, amusement and theme parks, marinas, accommodations, etc. Unfortunately, many of these facilities suffered from the aftereffects of the collapse of bubble economy in the early 1990s and closed due to poor business planning and management. And domestic tourism diminished its competitiveness because travelling overseas was often cheaper than domestic travel. In the same 1990s the number of domestic tourists reached its peak, but after that it has been on a downward trend over the last two decade.
As we move into the 21st century, Japan faces a serious problem of decreasing birth rate and aging population that can lead to a shrinking economy. At this time, the idea that tourism represents one form of temporary population movement was widely recognized, and tourism came to be considered nationwide as one of the most appropriate measure to stimulate the national and local economy. Thus the Japanese government and local governments positioned tourism as one of the important policies again, but attracting the growing Asian market was strongly emphasized in their strategies on this occasion.
Under these circumstances, the Great East Japan Earthquake hit off the east coast of Japan on March 11 2011, and caused the large-scale tsunami that resulted in the loss of a great many of lives and assets, nuclear accidents in Fukushima, harmful rumours, etc. To assist in the rescue and recovery efforts, a lot of victims of the disaster were temporarily evacuated to accommodations around the country (that are mainly hotels and ryokans) under the support of the government and concerned bodies, and many roadside stations (michi no http://www.e-unwto.org/doi/pdf/10.18111/9789284414833.1 - Harmony Lamm
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began the domestic tourism campaign to contribute to the earthquake recovery efforts. At this time, they focused on promoting domestic tourism, because domestic tourism was expected to act as a fast acting economic shock absorber. As part of their campaign, many travel agencies created volunteer tours that help people visit the affected areas and assist reconstruction efforts at ease, and this new domestic tourism movement of ‘volunteer tourism’ became popular especially among young people. Japanese became aware of the value of bonds of people after the earthquake, and it seems that Japanese domestic tourism should find its own social roles and adapt to the changing needs of society. Domestic tourism development always needs innovation to adapt to the changing environment.
7.1.5 Recommendation
1. Japan’s future in domestic tourism is tied to its demography. An ageing population tied to a low birth rate is putting an enormous pressure on the economy which consequently affects all other sectors including tourism. In the case of domestic tourism it has a considerable impact on related sectors such as accommodation, transport, and leisure activities. Therefore it is recommended that attention be paid to arrest the phenomenon of an ageing population. 2. More liberalization in the transport sector is necessary to encourage domestic tourism. Low cost carriers still face difficulties of unfriendly operating conditions with Japanese airports charging the highest fees in Asia. 3. Neighbouring Asian destinations offer stiff competition to the Japanese domestic market hence price flexibility is required to keep the Japanese at home. 4. While the number of holidays has greatly changed in the past decade it still lags behind many Asian destinations. An increase in holidays could have a positive impact on domestic tourism. 5. Social measures to assist the disenfranchised through travel coupons/vouchers etc. as practiced in the Republic of Korea is another recommendation that could vast assist to boost the domestic tourism market. 6. It has been seen that the older generation of entrepreneurs cannot keep pace with the technological revolution and changing values in tourism. Owners of ryokans still expect to receive organized package tours while FITs have taken over the market. Public relations to educate certain sectors of the tourism population are therefore strongly recommended. 7. Regional gastronomical dishes should be promoted on a national scale since
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10. Finally advertising and public relations aimed at the domestic market could be beneficial to encourage local travel. 11. Natural calamities like the recent tsunami and the impending damage to nuclear plants is a source of stress and tension to the local population that requires attention.
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