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GOVERNMENT

INVOLVEMENT IN
TOURISM

Topic Outline
1. Reasons for Government Involvement in Tourism
2. Levels of Government Involvement
3. Roles of Government in tourism planning
4. Meaning of The Structure of NTAs
5. The Need of NTAs
6. NTA functions

Reasons for Government


Involvement
in Tourism and the Economy

Promoting Economic Development

Facilitating and Supporting Industries


Raising Revenues
Creating a Stable Business Environment
Pursuing Other Policy Goals

Promoting Economic Development


The government involves in tourism for the aim of
building strong economy that will attract the local and
foreign investors in tourism.
by building or financing the necessary access roads and
water Lines.
to influence the value
international market.

of

their

currency

on

the

Thus, Economic development often requires government


relationships initiative and capital.

Facilitating and Supporting Industries


Most of industries can not develop without the support
from the government, thus there is need for the
government involvement in tourism sectors by creating
appropriate policy and planning and good taxation
system.
Raising Revenues
The government have deferent agencies and department
that are responsible to supervise the tourism activities
within and outside the nation thus the government raise
revenues in order to cover Government operating
expenses related to tourism

Creating a Stable Business Environment


The government involve in tourism and economy for the
aim of creating suitable environment for business
development this done by
establishing regulatory agencies and laws.
ensuring that certain standards of competence and
conduct
impose high import taxes to discourage the purchase of
foreign goods
Pursuing Other Policy Goals
Tourism policy has many basic goals including
employment, human resources development, education
and training and environmental protection, therefore to

Levels of Government
Involvement
Government involvement or intervention in the economy
occurs at different levels of government.
1. International Involvement
2. National Involvement
3. Local Involvement

International Involvement
At this level the government participate in various international
matters that related to the tourism, the typical example the
government as member of WTO signed various tourism
international treaties for the sake of the destination.
The main areas that provide chance for government to
participate in international matters are
1. International Political organizations;- UNDP, UNEP, ICAO and
WTO
2. Multilateral trade agreements:-The General Agreement on
Tariffs and Trade (GATT), General Agreement Trade in Services
(GATS), North American Free Trade Agreement (NAFTA),
3. Bilateral air agreements
4. Voluntary cooperation

National Involvement
Governmental involvement at the national level can be
extensive, and is often critical to the success of the
nations tourism industry. The primary areas of
involvement include the following:
1. Immigration (Entry and exit) regulating the issuance of
visas, monitoring borders and airports, and enforcing
customs regulations
2. Policy and planning
3. Infrastructure development
4. Marketing

Local Involvement
At the local level, government involvement can also be
quite visible and significant. It is at this level that the
governments regulatory function becomes prominent.
Key areas of local governmental involvement are the
following:
1. Control of the land development process, including
zoning laws and building design.
2. Enforcement of laws and regulations relating to health,
safety, and employment
3. Licensing of persons and businesses, such as tour
operators, travel agencies, hotels, restaurants, and
others.

The Major Roles of Government


in tourism planning and policy
formulation

1. Planning and facilitating tourism


2. Legislation and Regulation
3. Education and Training
4. Research and development
5. Marketing and promotion
6. Tourism taxation

Planning and facilitating


tourism
Governments devise policies and plans
for development. These include the
generation of guidelines and objectives
for the growth and management of
tourism, both in short and long term,
and devising of strategies to achieve
their objectives.

Legislation and Regulation


The government is responsible to formulate Legislation,
stipulating regulations and terms under which activities related
to tourism take place,
Tourism legislation includes the basic tourism law. This law
typically sets forth the policy for developing tourism and
establishes the functions, structure and sources of funding
of the
national tourism organizations (or regional tourism
office).
Various specific regulations are necessary for the protection and
preservation of tourist facilities and
the
natural, historical,
and cultural, resources of the country. These regulations can
take many forms, including:

Education and Training


The government supports the provision of education and
training to Government tourism officials and Tourism industry
employees by establishing tourism training and education
institutions, or by providing incentives and supervising and
formulation of various tourism curriculum
Government tourism officials need to understand tourism policy
formulation,
planning
and
marketing
techniques,
tourism
statistics and management of tourism information
system, tourism impact analysis, tourist information services,
and other matters.
Tourism industry employees need to be skilled in hotel and
catering operations, tour and travel agency services, guiding
tours, etc.

Research and development


Carry out research to find out the most suitable places
and ways to develop tourism and evaluate the resources
(attractions, facilities, labour) available in the country for
further tourism development, Plan for a well-built
infrastructure to meet the needs of developing tourism

Marketing and promotion


Marketing of tourism for a country or region is essential.
The role of governments in marketing includes several
activities
Establishing the marketing objectives
Formulating the marketing strategy
Preparing the promotion program
Providing tourist information services

National Tourism
Administrations
(NTAs)

The economic importance of the tourism industry would


obviously justify the existence of a strong and
structured administration, similar to that of transport,
agriculture, foreign affairs, etc. This structure is known
as National Tourism Administration (NTAs), also referred
to as national tourism offices (NTOs)
National tourism administrations is defined as A
central
government
body
with
administrative
responsibility for tourism at the highest level or,
Central Government body with powers to intervene
directly in the tourism sector.

The Structure of NTAs


NTAs vary in terms of their structure and relationship
government. The three basic forms of a NTA are:

to

other branches of

The state tourism secretariat, which is a high-level office either on its own or
within a ministry, with representation at, and access to, the highest executive
levels of the government. For example, the Tanzania Ministry of Tourism.
The government agency or bureau located within a department (such as a
department of commerce or economic development), and
reporting to that
department. The Tourism Bureau, for example, is located within the Ministry of
Transportation and Communication, tourism and trade dept. under Ministry of East
Africa
The
quasi-public tourism authority or corporation, which often includes
representation of members of the private sector and receives private funding
and which is run more independently of the government than the other types of
NTAs. The Canadian Tourism Commission , NCAA, TANAPA, are an examples.

The Need of NTAs


Coordinate many national policies that are vital for tourism
(taxation, consumer protection, social and labour legislation,
environmental policy, general education policy, etc.)
Maintain a close link between tourism development policy and
promotion abroad.
Avoid the over-supply of private or public facilities (marinas,
hotels, etc.) which leads to the proliferation of competing
projects and which results in lower occupancy rates and smaller
profits.
Provide backing for certain innovations (new tourism product
policy) so as to facilitate their distribution nationally and their
placement on the market.

Gather statistics and monitor economic activity


nationally for purposes of international comparison
and domestic comparison with other sectors and, if
need be, for directing policies in the right direction.
Deal with and manage tourism crises (of either human
or natural origin).
Represent its country in trade and consume shows and
expositions.

NTA functions
The scope of their functions varies from one NTA to
another, the World Tourism Organization has classified
NTA functions into five main groups:
General administration of travel and tourism
Tourism planning and development
Research
Education and training
Marketing and promotion

Review questions
Any management planning process needs a successful
strategic plan for it to achieve its goals; briefly and with
examples from any destination management plan,
explain the main factors a planner should take into
consideration while developing a plan for the destination