WE TOUR Project Course 2 - Module 3 - Mechanisms for Cooperation

1. MODULE 3
WHICH MECHANISMS COULD
BE DEVELOPED IN ORDER TO
ENSURE VERTICAL AND
HORIZONTAL COOPERATION
AMONG ALL STAKEHOLDERS
TRAINING PROGRAM Course 2
Tourism Oriented Policy

2. Subject 1. The stakeholders
1. National governments
2. Local governments
3. Private sector- businesses
4. Local communities
5. NGOs
6. Consumers-tourists
7. International development
assistance organizations

3. Stakeholders in the sphere of tourism
A stakeholder is an individual or an
organization with an interest in a business, or
an industry.
The stakeholders in tourism destination
are local residents, local companies, media,
employees, government, competitors,
tourists, business associations, activists and
tourism developers.
Stakeholders in hospitality industry
are: owners/investors, international hotel
operators, consultants, lawyers, construction
companies, local authorities, etc.

4. National Governments
The Government plays a key role in
the tourism industry. The local
government sector has traditionally
played an important role in
supporting tourism development of
local areas. This included the
provision of infrastructure, the
development of tourist attractions and
experiences, support for festivals and
events and the implementation of
tourist promotion plans.

5. Private sector – Business
Most organizations working in
travel and tourism operate is the
private sector. For example most
accommodation providers,
airlines, travel agencies, tour
operators, visitor attractions,
train companies, car hire firms,
airports, etc.

6. Local Communities
Local communities play an important
role in tourism development. Local
community has to be involved in
policy
and decision making so that it will
enhance the trust and of the local
people on the tourism industry.

7. NGOs
This role of NGOs is based on
the understanding of the new
social, political and economic
processes that accepts the
reliance on markets and private
sector initiatives as the most
efficient mechanism for
achieving economic growth,
producing goods, provides most
services to people etc.

8. Consumers-tourists
Tourists/Travelers, including business
travelers, and visitors to tourism
destinations, sites and attractions are at
the very heart of the tourism industry.
Major Factors Influencing Consumer
Behavior are: Psychological Factors;
Social Factors; Cultural Factors;
Personal Factors; Economic Factors.
Consumer Behavior is influenced by
many different factors and a marketer
should try to understand the factors that
influence consumer behavior.

9. International development
assistance organizations
The OECD Development Assistance
Committee, representing thirty of the
main donor countries, has included the
World Tourism Organization
(UNWTO). As the leading international
organization in the field of tourism,
UNWTO promotes tourism as a driver
of economic growth, inclusive
development and environmental
sustainability and offers leadership and
support to the sector in advancing
knowledge and tourism policies
worldwide.

10. Subject 2. The Tourism governance
system
1. The Tourism governance system.
2. National Government.
3. NTA
4. NTO
5. Local governments and DMOs
6. NGOs

11. The Tourism governance system
The Tourism governance system is a
process of conducting coordinated
activities among public, private and
social actors to create synergies.
Governance entails a guidance
process that is institutionally and
technically structured and is based
on principles, norms, procedures
and practices to collectively decide
about common goals how to
coordinate and cooperate for the
achievement of decided objectives.

12. National Government
Tourism is a sector of activity that involves
multiple interrelationships among numerous
types of actors and agents intervening in the
production of goods and services consumed by
visitors.
Government is an important stakeholder
because it controls, among other things, the
regulatory framework which defines how
enterprises are able operate, which is critical
to long term success.

13. NTA
NTAs are incorporated in WTO's
General Program of Work
NTO
The national tourist organizations
(NTO) are the body responsible for
the formulation and implementation
of national tourist policy. It is the
proper agency and instrument for
the execution of the national
government's responsibilities for the
control, direction and promotion of
tourism.

14. Local Governments and DMOs
Local Government plays in a key role in the tourism industry. Throughout the different levels
of tourism policy and planning the Government will dictate a variety of rules, requirements
and practices. From visa policies to the maintenance of public infrastructure, most tourism
business will operate closely with Government. DMOs are known as tourist boards, tourism
authorities or "Convention and Visitors Bureau". DMOs assist planners by providing
information on local resources and services, site selection, and other pre-conference and post-
convention services.

15. NGOs
NGOs create awareness among
the people regarding resources
and tourism assets in relation
to tourism development. They
also show the right track in
which the development should
take place. At the same time
they made us aware of the
adverse effect on culture,
environment, land etc.

16. The roles of stakeholders,
including Government bodies
The tourism industry is one of the
biggest industries in the world.
This means that there are many
individuals, groups and
organizations who are involved at
some level or another. So, A
stakeholder is a person, group, or
organization that can affect or be
affected an organization.

17. Examples of vertical and
horizontal cooperation
The European Union defines
horizontal cooperation as concerted
practices between companies
operating at the same level(s) in the
market.
Vertical integration occurs when
two companies at different levels in
the chain of distribution merge or
are bought.

19. 1
TRAINING PROGRAM Course 2: Tourism Oriented Policy
MODULE 3: WHICH MECHANISMS COULD BE DEVELOPED IN ORDER TO ENSURE VERTICAL
AND HORIZONTAL COOPERATION AMONG ALL STAKEHOLDERS
Contents
Stakeholders in the sphere of tourism.......................................................................................... 2
National Governments................................................................................................................... 2
Local Governments......................................................................................................................... 2
Private sector – Business ............................................................................................................... 3
Local Communities......................................................................................................................... 3
NGOs............................................................................................................................................... 4
Consumers-tourists ........................................................................................................................ 4
International development assistance organizations................................................................... 5
The Tourism governance system................................................................................................... 6
National Government .................................................................................................................... 7
NTA ................................................................................................................................................. 8
NTO ................................................................................................................................................. 8
Local Governments and DMOs ...................................................................................................... 9
NGOs............................................................................................................................................... 9
The roles of stakeholders, including Government bodies.......................................................... 10
Examples of vertical and horizontal cooperation ....................................................................... 12
References .................................................................................................................................... 12

20. 2
Stakeholders in the sphere of tourism
Stakeholders are important part to constitute tourism in destinations. A stakeholder is an
individual or an organization with an interest in a business, or an industry. Stakeholders may
not always have a direct link to the project or even the sector itself, but are nevertheless
impacted by the outcomes.
The stakeholders in tourism destination are local residents, local companies, media,
employees, government, competitors, tourists, business associations, activists and tourism
developers.
Stakeholders in hospitality industry are: owners/investors, international hotel operators,
consultants, lawyers, construction companies, local authorities, etc.
According of the definition of American philosophers Goeldnerand Ritchie (in their
bookTourism principles, practices, philosophies)there are four main stakeholders who play
roles in tourism development: the tourist, the business providing tourist goods and services,
which is entrepreneur, the government of the host community and the host community, that is
the residents.
National Governments
The Government plays a key role in the tourism industry. Throughout the different levels of
tourism policy and planning, the Government will dictate a variety of rules, requirements and
practice - from visa policies to the maintenance of public infrastructure, most tourism business
will operate closely with Government.
Local Governments
The local government sector has traditionally played an important role in supporting tourism
development of local areas. This included the provision of infrastructure, the development of
tourist attractions and experiences, support for festivals and events and the implementation of
tourist promotion plans. Tourism plans, policies and development objectives are core elements

21. 3
of the County and City Development Plans. Importantly, the sector mobilized a network of
stakeholders including agencies, community groups and the private sector to invest in and
promote their local tourist offering.
The role of local government is to promote the social, economic, environmental and cultural
wellbeing of their communities and their involvement in tourism must be related to that. The
local government units (LGUs) have the mandate to craft their own tourism plan which sets out
the priorities over the medium to longer term and how the local authority intends to contribute
to community well–being. The plan must set out the following the community outcomes as a
result of tourism development, how these have been identified and how the local authority will
contribute to these.
In view of the socio-economic benefits that could accrue to communities, it is imperative that
communities capitalize on opportunities from tourism. One of the major authorities which
provide the key roles to this success is LGUs. LGUs could provide the ideal, authority,
infrastructure, policy and planning procedures to maximize the benefit for its communities.
They play a major role in a community’s development, provide the links between the people
and government, address its community’s problems and concerns, enforce policies and hold
influence over its communities. The LGUs are also intermediaries in channeling the framework
of government into each individual community in order to create a beneficial outcome.
Private sector – Business
Most organizations working in travel and tourism operate is the private sector. For example
most accommodation providers, airlines, travel agencies, tour operators, visitor attractions,
train companies, car hire firms,airports, etc.
Six principle industries are: the Transportation Industry - land, sea, air travel; the Hospitality
Industry - hotels, resort, inn, motels, lodging/pension houses, apartments; Food and Beverage -
restaurants, travel/ institutional food service, disco.
One of the notable roles of the private sector in tourism planning and development is its ability
to invest time and money into aspects such as marketing and training. This can help to promote
the destination overall and can also help to up-skill staff in the local area.
Local Communities
Local communities play an important role in tourism development. They are regarded as
legitimate and moral stakeholders in tourism development. Local community has to be involved
in policy and decision making so that it will enhance the trust and confidence of the local
people on the tourism industry.
Involvement of local community has substantial value in tourism for locals, their lifestyle and
environmental, cultural and traditional factors; which are the main attraction in tourism. Thus,
the needs and aspirations of locals must be maintained. Tourism development along with the
involvement of local community will result in sustainable development as well as benefit
economic, environmental and cultural benefits. Active participation of community in tourism
ensures the enrichment of tourism experience as well.
There has been an argument that tourism contributes to local development by providing
destination countries with economic benefits and the benefits from tourism don’t disseminate
to all level of society. However, local community involvement assists in the proper distribution
of economy and at the very same time improve the long-term prospect of tourism. Local
community involvement confirms higher employment level with reasonable pay and seasonal

22. 4
jobs opportunity too. Local involvement can prevent leakage of foreign currency by
encouraging local ownership guiding services, transportation, accommodation, restaurants,
handicrafts, and local products shop.
Tourism development provides local people time to adjust in new environmental, social and
economic conditions and helps in preventing negative results of rapid uncontrolled
development. Involving local people in determining their development will prevent any
conflicts, which would inevitably affect the sustainability of tourism. Community-based tourism
have a high prospect in rural tourism development, and its success depends on better
community leadership, support, and participation of local administrative groups.
Local community participation in tourism development is very vital to attain the goals of
sustainability and to improve the welfare of local community. Involvement of community
ensures conservation of environment and culture of the local community.
NGOs
NGOs play an important role in the tourism sector also. This role of NGOs is based on the
understanding of the new social, political and economic processes that accepts the reliance on
markets and private sector initiatives as the most efficient mechanism for achieving economic
growth, producing goods, provides most services to people etc. Tourism policies are imposed
by the government on the people unilaterally. Sometimes these policies are not people friendly
and can deteriorate the environment of the tourist resort in one or other way. The people have
every right to differ with these policies. It is here where the role of NGOs is prominent. These
NGOs act as a catalyst and help the people to know about the positive and negative impacts of
the government policies. These NGOs then help the poor and vulnerable people against the
negative impacts of these policies.
The role of NGOs in tourism sector is very important because they point out the negative effect
in the development along with the people’s perception of that development. These NGOs
create awareness among the masses regarding the use and misuse of their resources and assets
in relation to tourism development. Not only acting as a critique, they also show the right track
in which the development should take place. These NGOs also made us aware of the adverse
effect on culture, environment, land etc. due to tourism development. Therefore, it is very
important for the government or any authority to take into consideration the suggestions and
advices of the NGOs while making any policy.
Consumers-tourists
Tourists/Travelers, including business travelers, and visitors to tourism destinations, sites and
attractions are at the very heart of the tourism industry. Without tourists, there would be no
tourism.
Customers use their senses to see, hear, smell, and touch (and sometimes taste) to decipher
messages from businesses, deciding on a product or service based on their perception of the
facts. A number of factors have been shown to impact the choices the consumer makes,
including personal factors, which reflect needs, wants, motivations, previous experience, and a
person’s lifestyle, and interpersonal factors, such as culture, social class, family, and opinion
leaders.
All tourists have a propensity to spend. However, certain types of tourists spend more than
others. International visitors typically outspend domestic travelers.

23. 5
In the hospitality industry, consumer behavior affects how guests choose the hotels,
restaurants, and entertainment. If you're studying your guests' behavior, you will want to know
what factors led to them choosing your business. This information can help you attract similar
customers.
Consumer behavior is the study of consumers and the processes they use to choose, use
(consume), and dispose of products and services, including consumers' emotional, mental, and
behavioral responses. Consumer behavior incorporates ideas from several sciences including
psychology, biology, chemistry, and economics. A consumer's buyer behavior is influenced by
four major factors: Cultural, Social, Personal and Psychological. Cultural factors include a
consumer's culture, subculture and social class. These factors are often inherent in our values
and decision processes.
Consumer perception is a major factor that influences consumer behavior. Customer
perception is a process where a customer collects information about a product and interprets
the information to make a meaningful image about a particular product.
Major Factors Influencing Consumer Behavior are: Psychological Factors; Social Factors; Cultural
Factors; Personal Factors; Economic Factors. Consumer Behavior is influenced by many
different factors and a marketer should try to understand the factors that influence consumer
behavior.
International development assistance organizations
The OECD Development Assistance Committee, representing thirty of the main donor countries,
has included the World Tourism Organization (UNWTO) in the List of eligible International
Organizations. UNWTO is the United Nations agency responsible for the promotion of
responsible, sustainable and universally accessible tourism.
As the leading international organization in the field of tourism, UNWTO promotes tourism as a
driver of economic growth, inclusive development and environmental sustainability and offers
leadership and support to the sector in advancing knowledge and tourism policies worldwide.
Priorities of the UNWTO are:
Mainstreaming tourism in the global agenda: Advocating the value of tourism as a driver of
socio-economic growth and development, its inclusion as a priority in national and international
policies and the need to create a level playing field for the sector to develop and prosper.
Improving tourism competitiveness: Improving UNWTO Members’ competitiveness through
knowledge creation and exchange, human resources development and the promotion of
excellence in areas such as policy planning, statistics and market trends, sustainable tourism
development, marketing and promotion, product development and risk and crisis management.
Promoting sustainable tourism development: Supporting sustainable tourism policies and
practices. Advancing tourism’s contribution to poverty reduction and development: Maximizing
the contribution of tourism to poverty reduction and achieving the SDGs by making tourism
work as a tool for development and promoting the inclusion of tourism in the development
agenda.
Fostering knowledge, education and capacity building: Supporting countries to assess and
address their needs in education and training, as well as providing networks for knowledge
creation and exchange.
Building partnerships: Engaging with the private sector, regional and local tourism
organizations, academia and research institutions, civil society and the UN system to build a
more sustainable, responsible and competitive tourism sector.

24. 6
An intergovernmental organization, UNWTO has 160 Member States, 6 Associate Members, 2
Observers and over 500 Affiliate Members. The General Assembly is the supreme organ of the
Organization. The Executive Council take all measures, in consultation with the Secretary-
General, for the implementation of the decisions and recommendations of the General
Assembly and reports to the Assembly. UNWTO headquarters are based in Madrid, Spain.
Zurab Pololikashviliis is the Secretary-general since 1 January 2018 after being elected by the
22nd Session of UNWTO General Assembly.
The education sector is also a stakeholder in tourism. Many educational courses will involve
visits to tourism areas to enhance the educational provision offered.
There is a strong relationship between transport and tourism. In fact, the very definition of
tourism, prescribes that a person must travel away from the place that they live in order to be a
tourist.
The Tourism governance system
The Tourismgovernance system is a process of conducting coordinated activities among public,
private and social actors to create synergies. Governance entails a guidance process that is
institutionally and technically structured and is based on principles, norms, procedures and
practices to collectively decide about common goals how to coordinate and cooperate for the
achievement of decided objectives.
We can consider two types of Government: public and private.
The public sector, whose fundamental role by virtue of functions in respect of different spheres
of activity that influence how tourism is developed in a country or territory (development of
infrastructure, planning, transport policies, fiscal matters, employment, etc.) is also
characterized by a diversity of actors and agents coexisting side by side. Such coexistence
occurs in two dimensions: Horizontally, that is, in terms of the legislative (parliaments,
governmental bodies) and/or executive branches, generally through more than one ministry or
department, agency, etc. Vertically, considering the different levels of government (local,
regional, provincial, national, etc.) existing in a determined country, depending on the form of
territorial organization in question.
The private sector is the principal producer and supplier of goods and services consumed by
visitors and consists of a diversity of economic units determined as a function of their size and
extent (micro, small, medium and large enterprises, whether local, regional, national or
transnational). Also it’s composed of different spheres of productive activity ranging from
manufacturing, to trade, to transport, to a wide variety of services (hospitality, food and
beverage service, cultural and recreational activities, etc.).
In the frame of conceptual development of governance in the tourism sector, it is necessary to
give continuity to and deepen the limited efforts undertaken to date. This would mean:
➢ Identification the basic components that could enter into a concept of governance
applicable to tourism, studying its implications not only for the public policies that guide
tourism development, but also for Public Tourism Administrations (PTAs), as a
fundamental component of government.
➢ Developing a methodological proposal for the construction of governance indicators in
the tourism sector, for use in determining, explaining and evaluating the space it
occupies in different contexts, its instruments and mechanisms.

25. 7
➢ Determining the patterns of interaction and institutional arrangements that may be
desirable for effective governance in the tourism sector.
Public administrations today need to adopt or deepen mechanisms for co-management, both
with other public institutions and private organizations, profit or non-profit, as well as with
citizens, to achieve a level of performance that makes it possible to provide public services in an
acceptable and economically sustainable way, as well as with the adequacy and quality
required by the citizens.
There are two tools in particular that should be used in the tourism sector with regard to
governance: partnerships and the creation of tourism observatories. The different forms of
collaboration should not be limited however, to the public-private sphere. They should also
extend to relations between public administrations themselves and between them and citizens,
given that most modern states are structured on a territorial basis based on complex, multilevel
models requiring fluid intergovernmental relations or effective and crosscutting systems of
collaboration and transfers of knowledge among the different spheres of public administration.
Another useful and complementary tool is the tourism observatory, which have mostly been
created and managed by tourism administrations, although there are cases of observatories
created by universities or strongly supported by business organizations or with a pronounced
business orientation.
Viewed in other terms, the space occupied by governance in the tourism sector is defined by
the dimensions of directive capacity and effectiveness. Each of these dimensions requires its
own set of resources (types of competencies, resources, actors, fields of application, etc.) which
are specific to each of them and consideration of which is important because it is through them
that the space occupied by governance.
National Government
Tourism is a sector of activity that involves multiple interrelationships among numerous types
of actors and agents intervening in the production of goods and services consumed by visitors.
In this framework, the government’s directive functions, under current conditions, are
particularly relevant in coordinating efforts to help ensure that the dynamic of permanent
growth that tourism has achieved to date is economically, socially and environmentally
sustainable to increase its contribution to development.
Governance is a practice of government that is measurable, that is aimed to effectively direct
the tourism sectors at the different levels of government through forms of coordination,
collaboration and/or cooperation that are efficient, transparent and subject to accountability,
that help to achieve goals of collective interest shared by networks of actors involved in the
sector, with the aim of developing solutions and opportunities through agreements based on
the recognition of interdependencies and shared responsibilities.
Government is an important stakeholder because it controls, among other things, the
regulatory framework which defines how enterprises are able operate, which is critical to long
term success. Specifically, stakeholder engagement can help: Empower people – get
stakeholders involved in the decision-making process. Create sustainable change – engaged
stakeholders help inform decisions and provide the support you need for long-term
sustainability.

26. 8
Government must take the lead in providing basic infrastructure like roads, water, electricity,
security to encourage stakeholders to invest in the sector. However, all stakeholders must work
on their businesses to develop competitive advantage to build a vibrant and sustainable
tourism industry.
The role of government in tourism is the responsibility to prepare and implement tourism
development plans, enforcement of standards and collection of data for tourism purposes. It is
imperative to national governments to assist the local government units (LGUs) in planning and
law enforcement.
Government as the main stakeholder led the coordination between stakeholders to heritage
tourism development. Strategic plan and policies must support by NGO, private, and tourism
and social services (business agencies), event tourists itself as the visitors which can give input
which is provided the improvements to the tourism destinations. Long-term tourism should
thus make optimal use of environmental resources, respect host communities, and ensure
variable, long-term economic operations, providing benefits that are distributed equitably
among all stakeholders
It is the responsibility of both national local governments to prepare and implement tourism
development plans, enforcement of standards and collection of data for tourism purposes. It is
imperative to national governments to assist the LGUs in planning and law enforcement. The
function of government is to enable communities to look after their places, and their natural
and cultural environment, to ensure that tourism brings more benefits to local communities
than harm. Governments that rely on tourism for a big percentage of their revenue invest a lot
in the infrastructure of the country. They want more and more tourists to visit their country,
which means that safe and advanced facilities are necessary.
NTA
National Tourism Administrations(NTAs), which are incorporated in WTO's General Program of
Work, is intended to: a) collect and disseminate updated information on the structure, spheres
of competence and activities of tourism administrations and on their present role in each
country's institutional framework; b) identify new trends and changes that have occurred over
recent years in the role and responsibilities of tourism administrations, and their impact on the
formulation of tourism policies, at the national and international levels; c) identify how
individual States have strengthened or adapted their administrative structures with
responsibility for tourism, in order to respond most effectively to the future development
needs of this branch of socio-economic activity.
NTO
The national tourist organizations(NTO) are the body responsible for the formulation and
implementation of national tourist policy. It is the proper agency and instrument for the
execution of the national government's responsibilities for the control, direction and promotion
of tourism.
The core activities of NTOs are coordination, legislation, promotion, research and providing
tourist information. To meet the changing situation of a destination, an NTO should adopt
alternative roles, developmental, marketing, management and innovative, consistent with a
destination's growth pattern. A core function is to provide policy and strategic advice to
national governments. Other functions include international and domestic marketing, planning,
research, development, regulation, and quality assurance.

27. 9
Local Governments and DMOs
Local Government plays in a key role in the tourism industry. Throughout the different levels of
tourism policy and planning the Government will dictate a variety of rules, requirements and
practices. From visa policies to the maintenance of public infrastructure, most tourism business
will operate closely with Government.
A destination marketing organization is an organization, which promotes a location as an
attractive travel destination. DMOs are known as tourist boards, tourism authorities or
"Convention and Visitors Bureau". They primarily exist to provide information to leisure
travelers. Additionally, where a suitable infrastructure exists, they encourage event organizers
to choose their location for Meetings, Incentives, Conferences and Exhibitions collectively
abbreviated as MICE.
DMOs are generally tied to the local government infrastructure, often with supporting funds
being generated by specific taxes, such as hotel taxes, membership fees and sometimes
government subsidies. However, in many cases, the observed decline in tourism following
cutbacks to public-sector expenditures has motivated the tourism industry to create a private
sector coalition in order to provide the functions of a DMO.
DMO is defined and recognized by its status as an incorporated, non-profit agency or local
government entity as well, which promotes economic development of the community through
travel and tourism. DMOs assist planners by providing information on local resources and
services, site selection, and other pre-conference and post-convention services.
NGOs
The role of NGOs(non-government organizations) in tourism sector is very important because
they facilitate development. These NGOs create awareness among the people regarding
resources and tourism assets in relation to tourism development. They also show the right track
in which the development should take place.
At present tourism is a travel for recreation, leisure, family or business usually of a limited
duration. Tourism is not like old time hospitality, it is a trade and source of profit. Tourism
accounts for 30% of the world’s trade of services and plays a very important role in the
development and promotion of the countries. It’s is one of the main sources of foreign
exchange for every country and the transfer of capital from one country to another. In the
modern era, the role of NGO’s is found almost in every sphere of life. NGO’s are voluntary
organizations that are funded by the state, foundations, business or private persons. NGO’s
work at local, national or international level. They play a very important role in the tourism
sector and this role is based on the understanding of the new social, political and economic
processes that accepts the reliance on markets and private sector initiatives as the most
efficient mechanism for achieving economic growth, producing goods, provides most services
to people etc. Therefore NGO’s play a diverse role in tourism sector. NGO’s plays very
important role in tourism awareness. There is another type of NGO who is involved in policy
making with government or any authority regarding tourism. It is a new phenomenon where
the advices of the NGO’s are considered during the policy making. In such kinds of the policy
making all the stakeholders are taken on board in order to come out with more efficient and
more acceptable policy regarding tourism.
NGO’s play a very important role at the tourist destinations as well. These NGO’s work on
tourism issues based on their need to understand changes affecting the communities in which

28. 10
they are working due to tourism departments. The problems at tourist destination are: the
menace of child labor, crime, host tourist conflict, drug trafficking, gambling, prostitutions, etc.
In this case the NGO’s look out for ways of understanding the changes affecting the area and
the communities, which are directly linked to the tourist destination.
NGO play a vital role in tourism management, such as:
• Ensure that the interests of all stakeholders are taken into account;
• Initiating consumer societies;
• NGOs can contribute to the development of policies and plans for the tourism industry;
• Assist the government in developing a standard for responsible tourism;
• Assist the government, private sector and communities in implementing, monitoring
and evaluating responsible tourism;
• Attract funding from donor agencies to develop specific community-based tourism
projects;
• Assist communities and community groups in organising themselves, preparing
themselves for tourism and implementing tourism projects;
• Assist the government in conducting tourism and environmental awareness programs
among communities and the tourism industry at large;
Mass tourism has been widely used as a development tool for boosting national, regional, and
local economies worldwide. Sustainability of the local culture, social structure, economic well-
being and way of life are common goals that are inherently interconnected with the health of
the natural resource base.
So, the role of NGO’s in tourism sector is very important because they point out the negative
effect in the development along with the people’s perception of that development. These
NGO’s create awareness among the masses regarding the use and misuse of their resources
and assets in relation to tourism development. These NGO’s also made us aware of the adverse
effect on culture, environment, land etc. due to tourism development. Therefore it is very
important for the government or any authority to take into consideration the suggestions and
advices of the NGO’s while making any policy.
The roles of stakeholders, including Government bodies
The tourism industry is one of the biggest industries in the world. This means that there are
many individuals, groups and organizations who are involved at some level or another. So, A
stakeholder is a person, group, or organization that can affect or be affected an organization.
Travelers, including business travelers, and visitors to tourism destinations, sites and
attractions are perhaps the most important stakeholders. Tourists visit attractions; spend
money; and may promote the attractions through word of mouth and social media if their
experience is positive. If the experience is not positive, tourists may not return to the
attractions again, and may even spread negative word of mouth.
Tourism employees, professionals and consultants also play a very important role in tourism
development. Restaurants, hotels, airlines, buses, trains, and others will certainly struggle
should they employ an inadequate number of employees, or there are shortages of skilled
people in the market.

29. 11
Local people are also stakeholders. They may have legitimate concerns and may resist any
tourism development. Therefore, they need to be involved in the decision-making process
where appropriate. Local people with their distinct values and cultures can add value to any
tourist destinations. Tourists may also benefit from local people in many different ways.
One of the key stakeholder in tourism is the workforce. The travel and tourism industry
employs more people, directly and indirectly, than any other industry in the world.
The education sector is also a stakeholder in tourism. Many educational courses will involve
visits to tourism areas to enhance the educational provision offered.
There are some other stakeholders that tourism planners should consider. For example,
institutions engaged in financing tourism projects, trade unions of employees and professionals
working in tourism, tourism educational centres, and other tourism specialist organizations play
a variety of roles in tourism development.
Stakeholders in hospitality industry are: owners/investors, international hotel operators,
consultants, lawyers, construction companies, local authorities, etc. It should be emphasized
that stakeholders are important because they can get involved in the decision-making process
and influence the organization’s actions in a way that is helpful to the management team.
The Government, as stakeholder, plays a key role in the tourism industry. Throughout
the different levels of tourism policy and planning, the Government will dictate a variety of
rules, requirements and practices. From visa policies to the maintenance of public
infrastructure, most tourism business will operate closely with Government.
The function of government is to enable communities to look after their places, and their
natural and cultural environment, to ensure that tourism brings more benefits to local
communities than harm.
Tourism is a multi-sectoral activity and the industry is affected by many other sectors of the
national economy. The State has to therefore ensure intergovernmental linkages and co-
ordination. It also has to play a pivotal role in tourism management and promotion.
The specific role of the Government will be to:
➢ Provide basic infrastructural facilities including local planning and zoning arrangements.
➢ Plan tourism development as a part of the overall area development strategy.
➢ Create nucleus infrastructure in the initial stages of development to demonstrate the
potential of the area.
➢ Provide the required support facilities and incentives to both domestic and foreign
investors to encourage private investment in the tourism sector.
➢ Rationalize taxation and land policies in the tourism sector in all the States and Union
Territories and in respect of land owned by Government agencies like Railways.
➢ Introduce regulatory measures to ensure social, cultural and environmental
sustainability as well as safety and security of tourists.
➢ Ensure that the type and scale of tourism development is compatible with the
environment and socio-cultural milieu of the area.
➢ Ensure that the local community is fully involved and the benefits of tourism accrue to
them.
➢ Facilitate availability of trained manpower particularly from amongst the local
population jointly with the industry.

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➢ Undertake research, prepare master plans, and facilitate formulation of marketing
strategies.
➢ Initiate specific measures to ensure safety and security of tourists and efficient
facilitation services. Facilitate the growth of a dynamic tourism sector.
Examples of vertical and horizontal cooperation
An example of horizontal cooperation is coopetition. The term coopetition is derived from the
Terms Co0peration and Competition. The term means that two companies cooperate in one
area but remain competitors in all other areas.
The European Union (2001) defines horizontal cooperation as concerted practices between
companies operating at the same level(s) in the market.
Vertical integration occurs when two companies at different levels in the chain of distribution
merge or are bought. To put it simply, horizontal integration is in case a related business
merges with another business operating in the same level of the production chain.
The Chain of Distribution helps understand how horizontal and vertical integration works so if a
tour operator mergers with another tour operator this is horizontal integration because they
are on the same level as the Chain of Distribution but if the tour operator merged with a travel
agent or a transport provider it’s vertical integration.
We can define what the difference between horizontal and vertical collaboration. Whether
vertical or horizontal – the direction indicates the level of value creation at which the
companies are located and the economic sector in which they operate. If both companies
operate in the same sector and are at the same level of value creation, they cooperate
horizontally. These companies are often competitors.
However, if the companies are from other sectors, they are at different levels of the value chain
and cooperate vertically. In vertical cooperation, a distinction is made between customer
cooperation and supplier cooperation.
In addition to classical cooperation strategies, there are also more specific forms of corporate
cooperation. These include joint venture cooperation, the interest group and the strategic
alliance.
A joint venture is a subsidiary established as a joint enterprise by two legally independent
entities. Although there is cooperation through capital, certain know-how and the management
of the companies, the joint venture has an autonomous status.
References
1. Francisco Antonio dos Anjos and James Kennell, Sustainability 2019, 11, 4257
2. Alexandra Cehan , Mihail Eva, Corneliu Iat,u and Carlos Costa, Article - Inquiring
Structure and Forms of Collaboration in Tourism through Social Network Analysis,
Sustainability 2020, 12, 8161.
3. Governance in the Tourism Sector, article: http://www.aalep.eu/governance-tourism-
sector
4. Role of different Agencies in Sustainable Tourism, Article:
https://www.cukashmir.ac.in/departmentdocs_22/E-Module-II_MTTM_C305.pdf

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5. The role of national tourist organizations, Iuoto, Annals of Tourism Research, Geneva,
Switzerland.
6. Stakeholders in tourism: Who are they and why do they matter, article,
https://tourismteacher.com/stakeholders-in-tourism
7. How to Identify and Engage with Government Stakeholders, Article:
https://www.swiftdigital.com.au/blog/government-stakeholders
8. Multi-stakeholder governance module, https://www.interreg-
central.eu/Content.Node/UGB/Multi-Stakeholder-Governance-Model-UGB-TWG3-
Deliverable-D.T1.pdf .