The Role of Government in Tourism

The Role of Government in Tourism
The Role of Government
Government involvement – Tourism, like any other economic activity, takes place in an environment that is shaped by many different forces. Complex policies, laws, regulations, and other actions.
National and International forces – Tourism is comprised of industries and activities that stretch not only across nations and regions, but across traditional lines of business and industry as well.
International regulations – International tourism relies on a high degree of communication and cooperation among nations with respect to this complex network of laws, regulations, and policies.

Government Involvement in Tourism
Alpina
USA
A skier who wants to visit Alpina
Alpina’s foreign visitors policy
Political and trade relations between USA
Bilateral air agreements
Where to stay and visit
Skier will pay many direct and indirect taxes.
Tourism-related laws, regulations, and restrictions will have a great impact of tourism activities.
An Imaginative country of Alpina
Cuba, Libya, North Korea

Reasons for Government Involvement in Tourism and the Economy
Promoting Economic Development
A country’s strength largely depends on its ability to sustain economic vitality.
In today’s economy, the tie between government and economic vitality is a direct and essential one.
Economic development often requires government initiative and capital.
Governments stimulate or control economic growth by monetary policy.
Facilitating and Supporting Industries
Governments support certain industries to create job, and tax
Tax credits are often used to encourage investment in and development of certain industries.

Raising Revenues
Much of government intervention in the economy results from its need to generate the revenue to maintain its agencies and activities.
Government operating expenses related to tourism include the costs to maintain the various departments responsible for tourism functions.
Creating a Stable Business Environment
Governments have a vested interest in ensuring that certain standards of competence and conduct prevail in the marketplace
Governments resolve problems and disputes that arise from economic activity. In order to setup standards, governments establish regulatory agencies and laws.
Pursuing Other Policy Goals
Governments intervene in business activity to achieve broader policy goals, such as employment, education and training and environmental protection.
Reasons for Government Involvement in Tourism and the Economy

Overall, high-level plans that includes goals and procedures. Usually 10 years.
Policy is meant to provide guidance by addressing the issues that are central to any effort to develop and sustain a tourism industry.
Policy embody goals and strategies
Policies are generally found in formal statements, such as laws and official documents..
Tourism policy is generally considered to be an area within a nation’s overall economic policy.
The role of tourism in the economy
Control of tourism development
Administration of tourism
Government support for tourism
Tourism’s impact
Roles of the Public Sector in Tourism
Policy

Planning
Tourism planning generally involves the designation of regions or areas to be targeted for tourism development
Tourism has its own negative impacts and rewards. The primary goals of tourism planning is to minimize its negative impacts and reaping the rewards.
Tourism is a complex industry that stretches across many different sectors and business.
Tourism is a site specific industry
The planning process requires policy makers to consider all aspects and impacts of the industry
Marketing analysis and strategy
Physical infrastructure
Human resources
Roles of the Public Sector in Tourism
Environmental impacts
Sociocultural impacts
Economic impacts

Development
Roles of the Public Sector in Tourism
Governments can play a useful and sometimes a necessary role in the development.
In many cases the private sector may lack sufficient size and capital to undertake the development of a destination on its own.
In certain areas governments may wish to control overall development by assuming the role of lead developer.
In some certain projects governments almost always require a leading government role. Airports, major land transportation projects.

Regulation
Government regulation plays an important role in protecting tourist and enhancing their travel experiences in many ways, including:
Consumer protection laws and rules – advance booking deposits in a trust account.
Fire safety laws in hotels
Health and food safety regulations
Competency standards for bus and boat operators
Environmental protection regulations
International aviation and air travel regulation
Multilateral and bilateral agreements
Roles of the Public Sector in Tourism

International Involvement
United Nations (United Nations Development Program (UNDP, United Nations Environment Program UNEP, International Civil Aviation Organization (ICAO)
UN supply funds to protect World heritage
World Tourism Organization, WTO
Association of Southeast Asian Nations (ASEAN) and European Union (EU)
Multilateral trade agreement (GATT), (NAFTA)
Bilateral air agreements
Levels of Government Involvement

National Involvement
The primary areas of include the following:
Entry and exit
Issuance visas, monitoring borders and airports, enforcing custom regulations
Policy and planning
A separate national ministry or department devoted to tourism.
Infrastructure development
Infrastructure, national parks
Marketing
Promoting the countries and destination to the outside world
Levels of Government Involvement

Key areas of local governmental involvement are the following:
Control of the land development process, including zoning laws and building design.
Enforcement of laws and regulations relating to health, safety, and employment.
Licensing of persons and businesses, such as tour operators, travel agencies, hotels, restaurants, and others.
Local Involvement
Levels of Government Involvement

The Role of NTAs
NTAs are ministerial bodies that pursue national tourism policies and goals.
NTAs were created and operated primarily as marketing entities.
They enabled countries pursue broad promotional strategies, in order to supplement the marketing normally done by private industry.
Traditional marketing activities of and NTA include:
Marketing and promotion of the nation and tourism destinations
Encouraging private sector support and cooperation in promotional activities.
Representing its country in trade shows and expositions
Promoting and producing special events
Promoting and contracting for market research analysis.
Maintaining overseas tourism information offices
National Tourism Administrations (NTAs)

The tree basic forms of a NTA are:
The state tourism secretariat, either on its own or within a ministry. Highest executive level of the government.
Example: Uganda Ministry of Tourism
The government agency or bureau located within a department, such as a department of commerce or economic development.
Example: Taiwan Tourism Bureau is located within the Ministry of Transportation.
The quasi-public tourism authority or corporation, includes private sector representatives, receives private funding and is run more independently of the government.
National Tourism Administration (NTAs)
NTA Structure

NTAs and the Issue of Public Sector Involvement in Tourism
Government involvement is seen by some as an unnecessary use of public fund for private purposes
Some authorities claim that private industry, especially airlines companies are much more efficient and effective destination promoters than many NTAs
NTA activities may be seen as a function of the overall economic development.
National Tourism Administration (NTAs)