WE TOUR project Course 1 - Module 1 - Tourism Management

1. TRAINING PROGRAM COURSE 1:
MARKETING AND MANAGEMENT
IN TOURISM
MODULE 1: TOURISM
MANAGEMENT (ESTABLISHING
AND MANAGING YOUR TOURISM
BUSINESS)

2. The aim of the training «Tourism Management» is to give to the participants the idea about tourism as an economic activity, its
types and forms, to prepare the participants for starting and management (including marketing) of tourism business.
In the result of the training the participants will:
1) know
• what is tourism, as an economic activity,
• know what are tourism resources,
• know types and forms of tourism,
• know the phenomena of ecotourism,
• the tourism services,
2) have the skills to:
• starting tourism business,
• create a Business Plan,
• establish and manage business,
• understand and analyze national legislation of tourism,
• documenting the business,
• manage the staff,
• market the business.

3. According to the UNWTO Glossary of Tourism Terms: Tourism is a social, cultural and economic phenomenon
which entails the movement of people to countries or places outside their usual environment for personal or
business/professional purposes.
All stakeholders shall do their best and cooperate for providing:
• Effective and sustainable utilization of the recourses, and
• Creation of diverse, competitive and sustainable tourist products and services,
• Income generation
• Economic growth
• Wellbeing and improvement of living standards
• Maintenance and reproduction of tourism recourses.
Tourism, as an Economic Activity

4. Tourism Recourses
Tourism recourses mean natural, historical, cultural,
religious, human, social, economic, scientific, entertainment
or other recourses, being able to become a tour product or
attraction, or part of tour package, and geared to
intellectual, spiritual, material, physical, social, economic or
other needs of tourists.
Tourism recourses are classified as natural and man maid
recourses.

5. Forms and Types of Tourism
In relation to the country of reference the following three basic forms of tourism are distinguished: inbound tourism,
outbound tourism and domestic tourism.
“types of tourism”:
• Historical Tourism
• Cultural Tourism
• Religious Tourism
• Natural Tourism
• MICE tourism
• Gastronomy Tourism
• City tourism
• Sun-and-sand tourism
• Agro-tourism
• Health tourism
• Winter tourism, etc.

6. Tourism Services
Tourism services mean the services provided to tourists and for
satisfaction of the needs of tourists.
Types
For example tourism services are:
• tour operating and travel agency,
• hotel services,
• transport services,
• car rent,
• food and beverage,
• organizing conferences, cultural, environmental, sport, business and
other events,
• tour guiding, etc.

7. Starting business
1) Establishing Business
What business do you want to establish and what services do you want to provide?
After you decided what business do you want, and that it is right for you and you know
why, you:
• establish and register legal entity (commercial organization like Limited Liability
Company, Joint Stock Company, etc.),
• register as an individual entrepreneur
• obtain all applicable business licenses

8. 2) Creating Business Plan
There is no single approach to developing a business plan, though some core elements are
essential to any business plan:
• Executive Summary
• Business Overview (products and services)
• Industry Analysis
• Market Analysis
• Competitor Analysis
• Marketing and Sales
• Organizational Structure
• Financial Analysis (sales and revenue projections, profit and loss statement, cash flow
statement, balance sheet)

9. How to establish and manage business
• Refine your idea and define your “Why”
• Write your business plan
• Assess and find your finances
• Determine your business organizational legal
structure
• Register your business and get tax ID number
• Obtain license or permits for business (when
applicable)
• Get business insurance
• Select your tools and software
• Hire your team
• Market and grow your business

10. National Legislation that you need

11. Documenting your business
The ISO 15489-1:2001 defines records as "information created, received, and maintained
as evidence and information by an organization or person, in pursuance of legal
obligations or in the transaction of business".
Any information your business is required to keep by law and any information you need
to operate as a business is considered a record. A key feature of records is that they are
proof that an event or transaction has taken place.

12. Which records should you keep?
• Financial Records
The degree to which businesses keep financial records will vary but at its most basic it
should include: all receipts and expenditure; all goods purchased or sold
• Human Resources (Employment) Records (refer to the Managing Staff section)
• Health & Safety Records
• Statistical Records

13. Managing Staff
1) Why is staff management so important?
• Ability to meet ambitions and goals
• Competitive advantage

14. 2) How do I employ and manage staff?
• Recruitment and selection
• Staff rights and responsibilities
• Record keeping
• Training and development
• Incentives and rewards

15. Marketing your Business (How to develop your business through
Marketing)
Basic marketing steps:
• What is your product market?
• Evaluate your tourism product
• Competitors analysis
• SWOT analysis

16. Know your market
Ask yourself the following questions:
• Are you offering your product to domestic or international visitors?
• Are you aiming your product at long-term travellers or short-term
tourists?
You need to be realistic about this and base it on ease of access and the
experience on offer to the visitor along with value for money.

17. Know your product
Ask yourself the following questions:
• What makes your product special? What is its Unique Selling Point
(USP)?
• Why should tourists come to visit?
• Can visitors access it easily?
• Is it good value for money?

18. Competitor analysis
In order to define your target market, you have to explore the competitive market.
Ask yourself the following questions:
• Does anyone offer similar products in your country and region?
• How do the similar products compare with yours?
• Are these similar products good value for money?
• What is the experiential value of these similar products?
• Can visitors easily access these similar products?

21. 1
TRAINING PROGRAM COURSE 1: MARKETING AND MANAGEMENT IN TOURISM
MODULE 1: TOURISM MANAGEMENT (ESTABLISHING AND MANAGING YOUR
TOURISM BUSINESS)
Contents
Tourism, as an Economic Activity ................................................................................................... 2
Tourism Recourses.......................................................................................................................... 2
Forms and Types of Tourism........................................................................................................... 3
The Phenomena of Ecotourism ...................................................................................................... 3
Tourism Services ............................................................................................................................. 4
Starting business............................................................................................................................. 4
How to create a Business Plan........................................................................................................ 5
How to establish and manage business.......................................................................................... 5
National Legislation that you need................................................................................................. 6
Documenting your business ........................................................................................................... 6
Managing Staff................................................................................................................................ 7
Marketing your Business (How to develop your business through Marketing)............................. 9
SWOT analysis............................................................................................................................... 10
References .................................................................................................................................... 10

22. 2
Tourism, as an Economic Activity
1) Definition of Tourism
According to the UNWTO Glossary of Tourism Terms: Tourism is a social, cultural and economic
phenomenon which entails the movement of people to countries or places outside their usual
environment for personal or business/professional purposes.
These people are called visitors (
which may be either tourists or excursionists; residents or non-residents) and tourism has to do with
their activities, some of which involve tourism expenditure.
2) Essence of Tourism, as an Economic Activity
What is doing tourist from economic point of view?
Tourist lives in destination, consumes goods and services.
Tourist is not employed by and does not receive salary from the resident entities in destination.
In essence in destination tourist spends the money earned outside destination and creates
additional demand on goods and services in destination.
Tourism resources are used to provide proper stay for tourists in destination and satisfy the demand
of tourist services.
So, all stakeholders shall do their best and cooperate for providing:
• Effective and sustainable utilization of the recourses, and
• Creation of diverse, competitive and sustainable tourist products and services,
• Income generation
• Economic growth
• Wellbeing and improvement of living standards
• Maintenance and reproduction of tourism recourses.
Tourism Recourses
1) Definition
Tourism recourses mean natural, historical, cultural, religious, human, social, economic, scientific,
entertainment or other recourses, being able to become a tour product or attraction, or part of tour
package, and geared to intellectual, spiritual, material, physical, social, economic or other needs of
tourists.
2) Types
Tourism recourses are classified as natural and man maid recourses.
Natural recourses include Special protected areas of nature, Natural monuments, Reserves, natural
images, landscapes, geographical and biological features, favorable climate conditions, other tourist
attractive physical objects of nature.
Man made recourses are classified as tangible and intangible.
Tangible recourses are historical and cultural monuments, historical buildings, constructions and
items, infrastructures other tourist attractive man maid items and objects.

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Intangible recourses are intangible values generated of cultural, traditional, scientific and
entertainment activities.
Forms and Types of Tourism
1) Forms:
In relation to the country of reference the following three basic forms of tourism are distinguished:
inbound tourism, outbound tourism and domestic tourism.
According to UNWTO Glossary of Tourism Terms:
• Inbound tourism comprises the activities of a non-resident visitor within the country of
reference on an inbound tourism trip.
• Outbound tourism comprises the activities of a resident visitor outside the country of
reference, either as part of an outbound tourism trip or as part of a domestic tourism trip.
• Domestic tourism comprises the activities of a resident visitor within the country of
reference, either as part of a domestic tourism trip or part of an outbound tourism trip.
2) Types:
The type of tourism is used to be defined depending what tour product or tourism recourse is used
for that tourism.
It is then possible to speak of specific “types of tourism”, such as:
• Historical Tourism
• Cultural Tourism
• Religious Tourism
• Natural Tourism
• MICE tourism
• Gastronomy Tourism
• City tourism
• Sun-and-sand tourism
• Agro-tourism
• Health tourism
• Winter tourism,
• etc.
This classification is increasingly requested and used by tourism stakeholders as a marketing tool.
Because these “Products” and “Types of Tourism” are still not sufficiently characterized in a uniform
way, there is no international recommendation for the use of this type of classification.
The Phenomena of Ecotourism
Ecotourism is not a type, but qualitative characteristic feature of tourism.
There are three main criteria to qualify tourism as ecotourism. According to The International
Ecotourism Society ecotourism is defined as responsible travel to natural areas that :
• conserves the environment,
• sustains the well-being of the local people, and

24. 4
• involves interpretation and education. Education is meant to be inclusive of both staff and
guests
The principles of ecotourism are:
• Minimize physical, social, behavioral, and psychological impacts.
• Build environmental and cultural awareness and respect.
• Provide positive experiences for both visitors and hosts.
• Provide direct financial benefits for conservation.
• Generate financial benefits for both local people and private industry.
• Deliver memorable interpretative experiences to visitors that help raise sensitivity to host
countries’ political, environmental, and social climates.
• Design, construct and operate low-impact facilities.
• Recognize the rights and spiritual beliefs of the Indigenous People in your community and
work in partnership with them to create empowerment.
Finally excellent description of ecotourism by a professor of one of New Zeeland universities:
“When human is part of nature all tourisms are ecotourism,
When human is separate from nature ecotourism is impossible.”
Tourism Services
1) Definition
Tourism services mean the services provided to tourists and for satisfaction of the needs of tourists.
2) Types
For example, tourism services are:
• tour operating and travel agency,
• hotel services,
• transport services,
• car rent,
• food and beverage,
• organizing conferences, cultural, environmental, sport, business and other events,
• tour guiding,
• etc.
Starting business
1) Establishing Business
As a starting point, you need to review why you want to start your own business and what is this
right for you?
• Financial gain
• Lifestyle choice
• Support and/ or develop the local community
What business do you want to establish and what services do you want to provide?

25. 5
After you decided what business do you want, and that it is right for you and you know why, you:
• establish and register legal entity (commercial organization like Limited Liability Company,
Joint Stock Company, etc.),
• register as an individual entrepreneur
• obtain all applicable business licenses
2) Creating Business Plan
As the blueprint of your business, the importance of a comprehensive, well thought out business
plan cannot be overstated as an essential tool in the development of a successful business. As a
starting point, it encourages business owners to focus on some initial key objectives:
• Business Concept: Are your goals well defined?
• Strategic Development: Do you have the right strategies and can you carry out these
strategies?
• Operational Planning: As a supporting document the business plan should give an insight to
the business and its operation for internal and external stakeholders.
• Financial & Investment Planning: In order to make an informed decision on your business as
a sound investment, investors need information on your business idea, your planned
operating strategies and financial predications; therefore, a credible business plan is a
fundamental tool for obtaining investment for your business.
How to create a Business Plan
A business plan is a document that describes your business, the products and services you sell, and
the customers that you sell to. It explains your business strategy. How you’re going to build and
grow your business, what your marketing strategy is, and who your competitors are.
What goes into a business plan? There is no single approach to developing a business plan, though
some core elements are essential to any business plan:
• Executive Summary
• Business Overview (products and services)
• Industry Analysis
• Market Analysis
• Competitor Analysis
• Marketing and Sales
• Organizational Structure
• Financial Analysis (sales and revenue projections, profit and loss statement, cash flow
statement, balance sheet)
How to establish and manage business
• Refine your idea and define your “Why”
• Write your business plan
• Assess and find your finances
• Determine your business organizational legal structure
• Register your business and get tax ID number
• Obtain license or permits for business (when applicable)
• Get business insurance

26. 6
• Select your tools and software
• Hire your team
• Market and grow your business
National Legislation that you need
To play well and win you have to know well the rules of the game - to succeed in business you have
to know the legislation regulating business.
Documenting your business
1) What are records?
Good record keeping is essential to the smooth and efficient running (and ultimate success) of your
business. All businesses must create and maintain records as directed by law and Codes of Practice.
The ISO 15489-1:2001 defines records as "information created, received, and maintained as
evidence and information by an organization or person, in pursuance of legal obligations or in the
transaction of business".
Any information your business is required to keep by law and any information you need to
operate as a business is considered a record. A key feature of records is that they are proof that an
event or transaction has taken place.
2) Why is it necessary to keep records?
Businesses need to keep records for various reasons. Recording the activities of your business will
ensure that you are meeting your legal, financial and administrative obligations, whilst also creating
historical information on your business. Historical records are invaluable, assisting with anything
from comparing/ tracking your business year on year progression, to assisting you maintain healthy
and successful relationships with clients and suppliers, to monitoring your compliance or
advancement to the EETLS eco-criteria. Well maintained records can support day-to-day tasks as
well as supporting business decisions.
By its very nature business transactions, operations and procedures create documents; either
contracts, receipts, invoices, certifications, etc., therefore a simple but effective system must be in
place to ensure these documents are created, distributed, used, maintained and disposed of
correctly and efficiently. It is important that your record keeping system is in place from the
beginning of operations and it is a system that works for you and your business.
3) How to create a record keeping system?

27. 7
There is no single system for record keeping so the advice is to use a system that works for you.
Keep it simple and easy to use, yet efficient and secure. That said, law and Codes of Practice may
have requirements that you must comply with on keeping records.
Below are some general guidelines to consider and/ or follow when setting up and maintaining a
record keeping system:
• Decide which records you are going to keep and the information necessary for these files –
dispose of any unnecessary information (not to be included in the record) carefully
• Name files logically (avoiding long, confusing codes) so that files can be easily identified
(understood) and accessed by any member of your team. The file name must make it
obvious as to what it contains
• When naming financial records, it may be better to have weekly, monthly, annual files as
appropriate
• If recycling old folders ensure old file names and information is completely removed to avoid
any potential confusion or files being misplaced
• Ensure file names are easily visible in their storage units (file cabinets, storage boxes, etc)
• All files must be returned to their storage unit once you have finished working with them
thus ensuring files are not being misplaced
• Store records appropriately – in a secure and safe environment. Do not overfill storage units
• Regularly sort and update record files e.g. at year end or completion of a project – old
records that are no longer in regular use (but need to be kept for legal and/ or financial
reasons) should be moved to long term storage boxes/ units
• Once records are no longer required as guided by local/ national authorities, dispose of them
appropriately, particularly confidential information
4) Which records should you keep?
• Financial Records
The degree to which businesses keep financial records will vary but at its most basic it should
include: all receipts and expenditure; all goods purchased or sold
• Human Resources (Employment) Records (refer to the Managing Staff section)
• Health & Safety Records
• Statistical Records
Managing Staff
1) Why is staff management so important?
• Ability to meet ambitions and goals
It is recognized that the most valuable resource any business has in achieving its aims and ambitions
are its employees. The studies shows that most successful in meeting their goals were the ones that
showed best practice in the following Human Resources (HR) areas: training and development,
recruitment practices, efforts to increase staff morale, the use of performance appraisals and the
use of staff incentives and rewards.
• Competitive advantage

28. 8
Competitive advantage is also known to be a result of managing HR practices correctly. It is
important both for your company and your staff that good practice is shown in staff management in
order to survive in a competitive environment.
2) How do I employ and manage staff?
• Recruitment and selection
Ask yourself: What tasks will be required to be done by the employee and what abilities or
qualifications must they have to be able to fulfill the role to a high standard?
After deciding what will be required, it needs to be translated into a job description and person
specification. This can then be advertised trough social networks, on websites, or can be spread by
word of mouth.
A typical job description should include: The Job title; Grade/rate of pay – should be a living wage;
Mode of employment (e.g. Full time, part time, seasonal, permanent, short term, etc.);Where the
job will be based; Who is responsible for the employee and if different to whom they will be
reporting; If the employee is to be responsible for other workers, who they are; A summary of the
main purpose of the role (ideally one sentence); List of key duties; How the applicant should apply;
Closing date
• Staff rights and responsibilities
It is important to have an employee protection policy in place based on both national standards and
the International Labour Standards, not only keeping your business within the law but also to attract
the best possible employees.
An employee protection policy should include: Written employment contracts for every member of
staff; Procedures and schemes for pregnancy, maternity and paternity leave; Pension schemes;
Trade union membership, collective negotiation agreements and representation of members by
trade unions; Discrimination policies and procedures; An effective procedure to deal with
complaints and compensation.
The rights and responsibilities of staff can be set out in a staff contract given to each individual
employee, and should encourage the highest standard of practice
• Record keeping
Ask yourself:
• What information does the company need to work smoothly?
• What information does the company receive, from whom and why?
• What information does the company need to give?
Personnel Records: Personal details (name, address, emergency contact, education,
national insurance number, etc.); Employee history with the company (when started, job title,
etc.); Details regarding terms and conditions of employment (pay, holiday entitlement, hours of
work, etc. Both employee and employer must keep a record of their working contract to avoid
any possible future disagreements); Training and development including further education with
the company; Any disciplinary action taken; etc
Statutory Records: This may be different depending on which country you operate, but should
include tax, national insurance, holiday entitlement, working hours, pay, paid sickness, accidents
and injuries.

29. 9
Company Records: Recruitment and selection details; Induction details; Training and
development details for each staff member; Sickness, absence, discipline, staff turnover; End of
employment details
Recruitment and Selection: Job descriptions; Person specifications; Application forms; Possible
CVs
• Training and development
As part of the effective sustainable management of a business, it is important to provide training
and development to employees and proof of ‘on the job’ training is essential. This can be done
through using suitable educational establishments or hiring specialist agencies who can provide
tailored training, schedules and methodology (which may be required if the individual wants to
become a certified guide for example) or you can design a training plan yourself.
• Incentives and rewards
As a responsible employer, you should provide incentives as a good way of encouraging employees
to seek further training and give rewards (such as a higher salary, paid leave, and flexible working
hours) based on job performance and the acquisition of further qualification etc.
Marketing your Business (How to develop your business through Marketing)
Basic marketing steps:
• What is your product market?
• Evaluate your tourism product
• Competitors analysis
• SWOT analysis
Know your market
Ask yourself the following questions:
• Are you offering your product to domestic or international visitors?
• Are you aiming your product at long-term travelers or short-term tourists?
You need to be realistic about this and base it on ease of access and the experience on offer to the
visitor along with value for money.
Know your product
Ask yourself the following questions:
• What makes your product special? What is its Unique Selling Point (USP)?
• Why should tourists come to visit?
• Can visitors access it easily?
• Is it good value for money?
Competitor analysis
In order to define your target market, you have to explore the competitive market. Ask yourself the
following questions:
• Does anyone offer similar products in your country and region?
• How do the similar products compare with yours?
• Are these similar products good value for money?
• What is the experiential value of these similar products?

30. 10
• Can visitors easily access these similar products?
SWOT analysis
You have to identify the strengths and weaknesses (internal factors) and
the opportunities and threats (external factors) of your business. A SWOT analysis is a valuable
step towards building your plan. It can help you to analyze where you are currently with your
business and product in order to support the upcoming success of your business, try to be self-
critical in the SWOT.
References
1. International Recommendations for Tourism Statistics 2008,
https://unstats.un.org/unsd/tradeserv/tourism/08-
40120%20IRTS%202008_WEB_final%20version%20_22%20February%202010.pdf
2. TypesofTourisminTheWorld,https://colorwhistle.com/types-of-tourism/
3. International Recommendations on Tourism Statistics (IRTS) Provisional draft Revision 5,
https://unstats.un.org/unsd/tradeserv/EGTS/IRTS%20provisional%20draft%20v5%20as%20o
f%206%20September%2013pm.pdf
4. What is ecotourism , https://ecotourism.org/what-is-ecotourism/
5. https://articles.bplans.com/business-ideas/7-steps-to-starting-your-own-business/
6. https://www.shopify.com/ph/blog/how-to-start-a-business

31. 11
7. https://joinup.ec.europa.eu/taxonomy/term/http_e_f_fdata_ceuropa_ceu_fdr8_fRecordMa
nagementComponent
8. https://www.investopedia.com/terms/b/business-plan.asp
9. https://www.investopedia.com/terms/s/swot.asp