1. D2.TTO.CL4.12 Slide 1

2. Subject Elements This unit comprises five Elements: 1.Describe the social and cultural impacts of tourism operations 2.Describe the environmental impacts of tourism operations 3.Describe the macroeconomic factors impacting on tourism operations 4. Describe the effects of microeconomic factors on tourism operations 5. Describe the political and legal influences and impacts on tourism operations Slide 2

3. Assessment Assessment for this unit may include:  Oral questions  Written questions  Work projects  Workplace observation of practical skills  Practical exercises  Formal report from supervisor Slide 3

4. Element 1 - Describe the social and cultural impacts of tourism operations 1.1Classify and describe the social impacts of tourism operations 1.2Rate the collective and individual changes as a result of tourism operations 1.3Classify and describe the cultural impacts of tourism operations 1.4Identify examples of appropriate and inappropriate tourism operations 1.5Identify factors affecting cultural sustainability in tourism operations 1.6Evaluate the impact, effectiveness and potential future of policies relating to tourism and social and cultural impacts Slide 4

5. 1.1Classify and describe the social impacts of tourism operations Overview of tourism:  Forms of tourism Domestic National International  Other key terminology Slide 5

6. 1.1Classify and describe the social impacts of tourism operations  Types of visitors  Needs of visitors  Social impact  Stakeholders Slide 6

7. 1.2Rate the collective and individual changes as a result of tourism operations  Have discussion on the impact of changes (past and current) on: Value systems Community structures Lifestyle issues  Discuss positive and negative impacts of tourism Slide 7

8. 1.3Classify and describe the cultural impacts of tourism operations The local community has to find a balance between satisfying the needs of tourists whilst still preserving the local culture becomes exposed to dilemmas related to the satisfaction of "tourists' demands" and the preservation of local identities.  Culture  Negative cultural impacts Slide 8

9. 1.4Identify examples of appropriate and inappropriate tourism operations Characteristics of tourism organisations:  Appropriate  Inappropriate Slide 9

10. 1.5Identify factors affecting cultural sustainability in tourism operations  Factors affecting cultural sustainability  Types of cultural issues  Ways to determine relevant cultural issues Slide 10

11. 1.6Evaluate the impact, effectiveness and potential future of policies relating to tourism and social and cultural impacts  Types of research  Importance of liaising with local communities  Strategies to minimise negative impacts of tourism  Develop or follow policies Slide 11

12. Element 2 - Describe the environmental impacts of tourism operations 2.1Identify the basic principles of sustainability in tourism 2.2Describe the relationship between the environment and tourism 2.3Quantify the impact of tourism operations on the environment 2.4Evaluate the impact, effectiveness and potential future of policies relating to tourism and environmental impacts Slide 12

13. 2.1Identify the basic principles of sustainability in tourism  What is sustainable tourism?  What are the benefits of sustainable tourism?  Sustainability issues  Basic principles of environmental sustainability Slide 13

14. 2.2Describe the relationship between the environment and tourism The environment and tourism  Benefits  Costs  Relationship Slide 14

15. 2.3Quantify the impact of tourism operations on the environment  Factors impacting environmental sustainability  Environmental areas impacted by tourism  Negative environmental impacts  Identifying impacts Slide 15

16. 2.4Evaluate the impact, effectiveness and potential future of policies relating to tourism and environmental impacts  Environmental Management Plan (EMP)  Strategies to minimise impact  Develop environmental sustainability policies Slide 16

17. Element 3 - Describe the macro-economic factors impacting on tourism operations 3.1Identify demand and supply factors impacting on tourism operations 3.2Identify and describe factors creating elasticity of demand for tourism operations 3.3Describe the economies of countries from which in-bound tourists are sourced 3.4Describe the impact of macroeconomic factors on the tourism industry 3.5Evaluate the short- and long-term changes in macroeconomic aggregates on tourism operations 3.6Compare local tourism industry performance against those of relevant other countries Slide 17

18. 3.1Identify demand and supply factors impacting on tourism operations 4.5Quantify changes in discretionary and non- discretionary expenditure within the tourism industry  Definition of tourism demand  Motivations for visiting a region  Elements of demand  Supply  Factors affecting changes in discretionary and non- discretionary income Slide 18

19. 3.2Identify and describe factors creating elasticity of demand for tourism operations  Definition of elasticity of demand  Inelastic/elastic tourism demand Slide 19

20. 3.3Describe the economies of countries from which in- bound tourists are sourced 5.7Identify national and internal tourism growth zones for in-bound tourists  Inbound tourism  Tourism in the ASEAN region  Activity and presentation #16/17  Tourism growth zones Slide 20

21. 3.4Describe the impact of macroeconomic factors on the tourism industry 3.5Evaluate the short- and long-term changes in macroeconomic aggregates on tourism operations 3.6Compare local tourism industry performance against those of relevant other countries All ASEAN countries see tourism as an extremely important way of generating money for their countries.  Types of tourism revenue  Economic benefits  Macroeconomic factors  Unemployment Continued next slide…. Slide 21

22.  Finances Inflation Currency exchange Broad money supply Fiscal balance Interest rates Slide 22 3.4Describe the impact of macroeconomic factors on the tourism industry 3.5Evaluate the short- and long-term changes in macroeconomic aggregates on tourism operations 3.6Compare local tourism industry performance against those of relevant other countries

23. Element 4 - Describe the effects of micro-economic factors on tourism operations 4.1Differentiate between microeconomic factors and macroeconomic factors impacting on tourism 4.2Track changes in cost structures and establishment costs in relation to tourism operations 4.3Evaluate current comparative considerations within the context of tourism operations 4.4Interpret current policies and initiatives impacting on tourism operations 4.5Quantify changes in discretionary and non-discretionary expenditure within the tourism industry 4.6Identify the current competitive advantage that exists for the host country/region in relation to tourism operations 4.7Describe the impact of e-commerce on tourism operations 4.8Review tourism resource sources, data and interpretive statistical information relating to current tourism operations and emerging trends Slide 23

24. 4.1Differentiate between microeconomic factors and macroeconomic factors impacting on tourism 4.2Track changes in cost structures and establishment costs in relation to tourism operations In this section we will analyse both macro and micro environmental factors and how this analysis can determine business strategies for the future  Microeconomic factors  Types of capabilities  Types of resources Physical Human Financial Intangible Slide 24

25. Factors affecting capabilities and resources There are a number of factors that will need to be considered when determining capabilities and resourcing needs.  Internal  External  SWOT analysis Slide 25 4.1Differentiate between microeconomic factors and macroeconomic factors impacting on tourism 4.2Track changes in cost structures and establishment costs in relation to tourism operations

26. 4.3Evaluate current comparative considerations within the context of tourism operations 4.6Identify the current competitive advantage that exists for the host country/region in relation to tourism operations Knowing what the competition is doing, whether it be another region or individual tourism organisations in the marketplace is a critical aspect of strategic planning for any business.  Understand market situation  Analysing the competition  Competitive advantage Slide 26

27. 4.4Interpret current policies and initiatives impacting on tourism operations Becoming familiar with overriding policies and initiatives can help you understand the future direction for tourism that applies to your region.  Types of general policies and initiatives ASEAN Tourism Strategic Plan 2011-2015 Sustainable Tourism Development in Thailand Tourism National Strategy Philippines Slide 27

28. 4.7Describe the impact of e-commerce on tourism operations The travel & tourism industry is all about connecting people, places and cultures using e-commerce including social media and social networks. It is a vital tool in the growth of tourism around the globe.  Role of e-commerce  Emerging technologies and trends Slide 28

29. 4.8Review tourism resource sources, data and interpretive statistical information relating to current tourism operations and emerging trends Understanding trends of the industry is vital in ensuring that what you are seeking to provide to the market is not only fresh and relevant but is in demand.  Definition of trends  Emerging trends  Sources of trend information  Market trends  Tourism statistics and trends Slide 29

30. Element 5 - Describe the political and legal influences and impacts on tourism operations 5.1Describe the ethical considerations that currently apply to tourism operations 5.2Describe the state of political stability in the host country and countries from which in-bound tourists are sourced 5.3Describe the political and legal restrictions that currently exist on entry to the host country/region 5.4Define the legal requirements that currently apply to conducting tourism operations in the host country/region 5.5Describe the function of key statutory host countries bodies in relation to tourism operations 5.6Evaluate the economic impact of national and regional host country security issues on tourism operations 5.7Identify national and internal tourism growth zones for in-bound tourists 5.8Describe the impact of current immigration, quarantine and customs regulations on tourism operations Slide 30

31. 5.1Describe the ethical considerations that currently apply to tourism operations In essence, ethics can be defined as moral principles that govern a person's or group's behaviour.  Ethical considerations Ethical requirements relate to issues about which a personal judgement has to be made regarding the way the business elects to conduct its business  The basis of many ethical decisions comes down to personal values Slide 31

32. 5.2 Describe the state of political stability in the host country and countries from which in-bound tourists are sourced 5.3Describe the political and legal restrictions that currently exist on entry to the host country/region 5.8Describe the impact of current immigration, quarantine and customs regulations on tourism operations The structure, power and influences of government, whether nationally or locally can certainly influence the demand and operations of a tourism organisation.  Importance of political stability  Political influences  Visas Slide 32

33. 5.4Describe the political and legal restrictions that currently exist on entry to the host country/region For any business it is important to understand the different types of laws that govern business operations and activities.  Types of tourism laws and regulations Types of tourism laws and regulations General workplace rights and responsibilities General areas to which legal requirements apply Legal considerations Slide 33

34. 5.5Describe the function of key statutory host countries bodies in relation to tourism operations Each country within the ASEAN region will have dedicated government departments and authorities that specifically focus on their tourism industry. Their role is to regulate and manage the industry.  Ministries of tourism Slide 34

35. 5.6Evaluate the economic impact of national and regional host country security issues on tourism operations It is now widely accepted by the international community that the success of the tourist industry in a particular country or region is directly linked to its ability to offer tourists a safe and pleasant visit.  Types of security concerns  Identify and evaluate security concerns and mechanisms Slide 35

36. The End This unit comprised five Elements: 1.Describe the social and cultural impacts of tourism operations 2.Describe the environmental impacts of tourism operations 3.Describe the macroeconomic factors impacting on tourism operations 4. Describe the effects of microeconomic factors on tourism operations 5.Describe the political and legal influences and impacts on tourism operations You have now completed this unit and the trainer will provide details on assessment. Good Luck. Slide 36