Tourism Market
Tourism Market
Tourism Market
Structure
1.1 Objectives
1.2 Introduction
1.3 Transportation
1.3.1 The Way
1.3.2 The Terminal
1.3.3 The Carrying Unit
1.3.4 The Motive Power
1.4 Classification
1.4.1 Land Transport
1.4.1.1 Road Transportation
1.4.1.2 Rail Transport
1.4.2 Air Transport
1.4.3 Water Transportation
1.5 Advancements in transport and the evolution of tourism
1.6 Global Transport Regulations, policies, and political influences
1.7 Role of transport in Tourism
1.8 Let us sum up
1.9 Clues to Answer
1.10 Further Readings
1.1 OBJECTIVES
1.2 INTRODUCTION
Indeed, tourism has become one of the largest industries in the world and it would not have been
possible without the advancements and modernization of the transport system. Travel is
fundamental in tourism and transport is essential in facilitating safe, comfortable, and affordable
travel. Thus, the Travel and Tourism industry would certainly become non-functional in the
absence of the transport sector. Transport plays not only the function of transferring tourists from
the origin to the destination via transit route or the return but also making the travel more
enjoyable and memorable. Importantly, it is crucial in ensuring a complete tourist experience by
taking services of good transport. Largely, transport expansion in a destination increases tourist
footfalls and promotes the scope of tourism activities. The role of transportation is to enhance the
attractiveness of a tourist destination as it is a key component of the tourism industry.
For example in the international tourism scenario, there has been a rise in the share of
transferring people by air transport systems since the end of the Second World War. Currently,
this transport system constitutes the largest share in international travel. According to the figures
released by United Nations World Tourism Organization (UNWTO, Tourism Highlights 2019),
the share of air travel increased from 46 per cent in 2000 to 58 per cent in 2018, while land
transport decreased from 49 percent to 39 percent during the same period. On the contrary, rail
and water as an alternative mode of transport system have been hit by the expansion of air
transportation networks in the international and domestic sectors. As such air transport is fast
becoming an affordable model for the new age travelers or tourists across the world. Let us
understand various aspects of transportation and their relationships in detail in the following
sections.
1.3 TRANSPORTATION
The word 'transportation is derived from the Latin word 'transportre'. This primarily carries
goods and transfers people from one place to another. Transportation enables the movement of
people or goods safely, economically, and timely from one location to another. This is a symbol
of civilization and urbanization, showing the credibility of the country to develop a seamless
communication network. It becomes possible with the help of basic facilities and services
required for the movement of people and/or cargo. The transportation system is strongly
integrated with necessary and advanced facilities like roads, bus stands, fuel stations, service
stations, fire safety stations, cafeteria, restrooms, etc. These are the indispensable means and
equipment necessary for the movement of passengers or goods. Above all, an efficient transport
system is essential for the fastest and sustained economic development.
Indeed, every transportation system aims at having a smooth and efficient transport mechanism
necessary for the countries to ensure economic development and social well-being. A transport
system enables connectivity between places and people. Ensuring accessibility for the place and
people is one of the primary responsibilities of the authorities at different levels. People have the
freedom to move according to their will and needs as it is a fundamental right of the people.
Moreover, no country can stay isolated from the rest of the world that transport system unites the
countries together. It is not only the key infrastructure required for the growth process but also
plays a significant role in promoting national integration, which is particularly important in a
large country like India.
It is the facility on which a transport service commences transporting people or cargo to a distant
place. Accessibility through the mode of air transport can only be possible through
airports/helipads/sea/river/lake/water bodies. For instance, a terminal in an airport from where
the mode of air transportation begins to another airport is the origin point for a passenger to do
formalities for departure. There are bus terminals, railway stations, and seaports or harbors
through which passengers commence travel after completing departure formalities. On the other
hand, passengers do perform arrival formalities at the terminus. As such terminal acts as an
interchange or transit point for a passenger or traveler to layover and take facilities of the
restroom, cafeteria, shopping, Spa, etc. In the case of the airport, the usual change of mode of
transport is from land to air or water to air and vice versa.
The vehicles used for road transportation include bus/coach or car. Aircraft is a requirement for
air transportation. A ship or boat is a common type of carrying unit used in water transportation.
Over the years, the nature, capacity, and diversity of carrying goods and passengers have been
changed drastically. In this modern world, the freedom to choose the most suitable mode of
vehicle depends on convenience, affordability, safety, reliability, and timeliness.
This powers the vehicle to move on the 'way' and its capacity are significant in the speed, range,
and safety of transportation. Aircraft have high motive power that is usually provided by Jet
engines in this modern era. Other types of engines are also in use. In the ancient periods, people
used the motive power of natural forces like wind, animals, etc. Mechanization started much
later and over the last few centuries, the motive power has made much advancement.
1.4 CLASSIFICATION
Transportation can be classified on a different basis. The most common classification is based on
the way/medium on which the transportation takes place. The typical classification of
transportation is Land-based, air-based, and water-based. All three types of transport systems
meet the needs of people over the centuries. Descriptions of different modes of the transport
system are given below.
This is the most common type of transportation that is used in all regions of the world. This is the
primary mode of transport for people belonging to different demographic profiles. Different
types of surface transport systems are presented below.
Bus
Intercity bus services
Regular/Route/Scheduled Bus Services
Motor Coaches
Charter Services (using the bus on hire for a specific period)
Airport Transportation
Automobile
Private cars
Car Rentals/Rent-A-Car
Taxi and Limousine Services
Recreation Vehicles (modified vehicle with sleeping and some other similar facilities)
Goods/freight/cargo vehicles
For the last couple of centuries, railways have been a significant form of transportation in many
regions of the world. It is one of the mass transport modes of transportation and it is a relatively
more environment-friendly as well as a highly economic form of transportation. Three different
trains run on broad gauge, meter gauge, and narrow gauge. Broad gauge lines have laid on the
pain area or lower altitude region whereas meter gauge and narrow gauge lines have been laid on
the medium and high altitude regions/terrains. Types of rail transport in India are given below.
Air transport represents the transportation for the use of varied types of aircraft. This is one of
the fastest-growing transport forms in the world. Airlines provide transportation services using
different aircraft with the help of airports and air navigation services. Passengers and cargo are
transported in this mode of transportation. Details of air transportation are given below.
Aircraft Manufacturers (Eg. Boeing and Airbus- manufacturer of aircraft)
Airports (terminal and space with facilities and services for the starting and ending of air
services)
Air Navigation Services and Air Traffic Control (The facilities and services that facilitate
the flying of aircraft)
Airlines (Airlines consist of scheduled airlines which undertake regular air services with
the help of a published timetable and non-scheduled air services which are provided by
charter airlines)
Traditionally, water transportation is an essential mode of transport. For several centuries, sea-
based water transportation was the most convenient form for facilitating the movement of people
and cargo. Water transport is divided into Inland waterways and deep-sea navigation. Ships are
the main carrying unit used in sea transportation. Boats, ferries, etc. are used in inland water
transportation. The following are some of the major water transport forms.
Ocean Liners/Ship services
Cruises (luxury tourist ships)
Ferry Services
Boat services
There exist strong linkages between each mode of transport. Most importantly, some of the
modes of transport cannot function without the support of the other transport services. For
instance, air transport necessitates services of land transport for ensuring accessibility for
passengers from different parts of the region. Usually, rail transport is linked with road transport
systems. In this regard, water transport is no different from it. Many airports have rail as well as
road transport connectivity. An airport must be connected to the city and other parts of the
region. Taxi services, commuter bus services to the city, bus service to other cities in the region,
rail service linkage, etc. are very essential for the airports. For long or distance travel, air and
water transportation are preferred to road transport.
Transportation has witnessed remarkable progress over the last several centuries. However, the
last two centuries have recorded revolutionary changes in transportation. During the last two
centuries, tourism has also become a major economic sector in the world, due to the massive and
vast network of transport systems worldwide. While reflecting upon the history of the travel
trade, the evolution of tourism has mostly coincided with the advancement in transportation
as well. The invention of railways marked an important milestone in the growth of tourism. It
was the rail services that the first package tour operation was conducted by Thomas Cook, way
back in 1841. In the 20th century, commercial air transportation began and that gave impetus for
the promotion of international tourism worldwide. Since the end of the Second World War, air
transport could become the most significant transport form in the realm of international tourism.
While we look at the growth of transportation, the major events can be summarized as follows.
Motorized transportation coincided with the industrial revolution. Before this event, surface
transport was dominated by animal-drawn carts and wind in the case of sea transport. Water
transport was more efficient and economical. That enabled long route trade, across borders as
well. International trade was limited to certain essential commodities and high-value goods of
those times. Trade was the most important reason for cross-border transportation. You might
have heard about the Silk route, which existed for 1500 years in early history. The Silk route
connected China with the rest of Central Asia, Eastern Europe, and Western Europe, en-route
countries like India, Afghanistan, Persia, Arabia, Greece, and Italy. Caravans were the prime
mode of transport for trade. From the 15th century A.D., maritime transport got transformed and
the Europeans sailed across the oceans for trade across continents when the significance of the
silk route started declining. Major cities in Europe were connected with the port cities. In the
early years, ships were propelled by rowers and, later, sails were added around 2500 BC as a
complementary form of propulsion. Fully-fledged sail ships replaced Galleys by the fourteenth
century. Europeans identified new sea routes, led by Columbus in 1492 towards the West and
Vasco daGama in 1497 to the East. Steamships entered the international trade scene by the
nineteenth century. By the late eighteenth century, the inland water transportation system gained
significance for the movement of goods in Europe.
During the industrial revolution, canal-based transportation became prevalent. Sooner, railways
became a popular mode of transport and maritime transport, as well as rail transport, was
propelled by steam engines. In addition, road transportation too gained significance for trade-
related movement as inland transportation faced limitations during industrialization. Canals got
the center of inland water transportation and Barges were also in use during the same time. In
1830, the first commercial rail line link, between Manchester and Liverpool became operational.
Sooner it became a regular mode of transport. With the establishment of the rail system as a
major mode of inland transport, canal-based transport started declining its significance. Regular
maritime routes connecting major harbours of Europe and North America were opened by the
commencement of the nineteenth century, using clipper ships.
The first automobile car was invented in 1908 by the Ford Company. By the 1920s, the car
started getting popular. The advancements in the use of the automobile in the 1920s and the
motor car revolutionized holiday and recreational habits. Private trips using cars became popular.
Road transportation became the primary mode of transport during the time and it is still one of
the most attractive modes of transport. On the other hand, the experimental flight was taken off
by the Wright brothers in 1903. Subsequently, commercial air transportation also began in the
1920s. Since the 1950s, air transportation has started to become a major transport mode. The rise
of modern tourism began since then. Slowly, air transport became the primary mode of transport
in tourism, and by the beginning of the new millennium, more than half of the international
travelers used air transport for travel between the origin and the destination. After 1970,
telecommunications were merged with information technology and the merger made much
advancement in transportation. Moreover, wide-body aircraft were in use by the second half of
the 1970s and that made air transport more economical for the passengers. This created the long-
haul tourism trend. Advancements in air transport further increased the growth of tourism as one
of the largest economic sectors in the world in the new millennium. As passenger ship services
lost the charm, a new form of tourism called Cruise tourism has emerged to provide alternative
holiday options. Cruise tourism uses large ships for visiting multiple destinations. Wealthy and
affluent could start taking a pleasurable trip on the sea. This has emerged as a growing segment
of tourism. In addition, Inland waterways, particularly the ferry services too have significance in
tourism in many regions in the world.
Transportation is a sector with varied rules and regulations. This is more applicable in the case of
international transportation. Crossing the borders of a country needs to pass through a series of
legal formalities to clear the needed procedures for foreign travel. Along with the
passengers/tourists, the vehicles also need to have permission in most cases. With the
background, air transport is the most regulated mode of transport in the world and this is running
with agreements led by International Air Transport Organisation (IATA) and International Civil
Aviation Organisation (ICAO). Safety and security constitute the major reasons for ensuring that
regulations and procedures are to be enforced and followed in a strict sense. Furthermore, air
transportation or water transport or rail transport, or road transport at the international level
needs to cross the borders of the country via air/water/surface route. This needs agreements
between the respective countries. Governments are primarily engaged in agreements with other
countries through a bilateral or multilateral system of agreements. This enables the airlines of
those countries to operate services to the other countries. Different types of permissions,
approvals, licenses, etc. are needed to operate across the countries in the world.
About road transportation, India has the existing Motor Vehicles Act, 1988 and the Central
Motor Vehicles Rules at the national level, and there are specific rules at the state level as well.
While the Central Government regulations deal with the kinds of registrations and permits that
may be granted about the intended use of the vehicle. Whereas the state-level rules and norms
specify the permits needed for vehicles under the framework of registrations/permits created by
the Central Government and also creates licenses for the operation of such permits. Central
government regulations also involve the aspects associated with the usage of vehicles for
international travel, insurance required, term of usage of vehicles, etc. Air transport has
regulations at multiple levels. Within the nation, certain aspects are to be adhered to by the air
transport service providers. In international operations, some other regulations are to be
followed. Safety and security standards have to be followed by the service providers at all levels.
At the international level, the most important organization that enforces safety and security
standards is ICAO. In India, the Central government has the authority in ensuring the
development and implementation of the needed regulations and guidelines for the smooth and
efficient conduct of air transportation in India. Under the Ministry of Civil Aviation, the prime
regulatory body is the Director-General of Civil Aviation (DGCA). It is responsible for the
regulation of air transport services to/from/within India and for enforcement of civil air
regulations, air safety, and airworthiness standards. Moreover, it coordinates all the regulatory
functions with the ICAO. Under it, the Bureau of Civil Aviation Security is vested with the
authority to lay down standards and measures concerning the security of civil flights at
international and domestic airports in India. an agency namely the Airports Economic
Regulatory Authority of India has been created to regulate tariffs for aeronautical services, to
determine other airport charges for services rendered at major airports, and to monitor the
performance standards of such airports. The Airports Authority of India (AAI) looks after the
integrated development, expansion, and modernization of the operational, terminal, and cargo
facilities at the airports in the country conforming to international standards. The Inland
Waterways Authority of India (IWAI) focuses on the development and regulation of inland
waterways for shipping and navigation. The Ministry of Shipping, Ports, and Waterways are the
apex body of all the water transportation-related activities within the country.
There have been attempts to have regulations on international air transportation since the 1920s
as it takes place over the territory of sovereign countries. Moreover, there were issues associated
with accidents, claims, baggage loss, etc. Different conventions were held at varying intervals of
time to resolve any such issues about the international transport system. In 1916, the First
Conference of Pan-American Aeronautics was held in Santiago of Chile and that argued for
unifying their aerial legislation, to formulate an international air code of the American Republics.
Paris Convention for the Regulation of Aerial Navigation took place in 1919 which could
recognize the principle of airspace sovereignty, until then it was enforced customarily by the
states. This stated that the member states have complete and exclusive sovereignty over the
airspace above their territory. Later the Havana convention (1928) and the Warsaw Convention
(1929) resolved issues that helped streamline the commercial aspects of air transportation.
The Chicago Convention (1944) was the most important convention about commercial aviation
and that paved the way for efficient international air transportation. The ICAO was formed as an
outcome of the convention. It could finalize the rules under which international aviation
operates. International Air Services Transit Agreement, the International Air Transport
Agreement, drafts of 12 technical Annexes to the Chicago Convention, and a standard form of
Bilateral Agreement were also finalized as part of the Chicago convention. The establishment of
inter-governmental agreements is usually referred to as Bilateral Air Service Agreements. That
became the most efficient measure for the smooth conduct of international air transportation. A
bilateral air transport agreement takes place between two nations, provides a commercial access
to other markets by the establishment of traffic rights. It is expressed as 'freedom of the air',
encompasses the right to transport passengers, cargo, and mail, separately or in any combination.
Five freedoms of the air are the most common among them. The first and second freedom rights
are granted essentially automatically when countries gave consent to International Air Services
Transit Agreement. The other three freedoms become valid when countries engage in bilateral
agreements and sign them. The freedoms are given in table 01.
Table 1.01
Freedoms of the Air
First Freedom of the Air
The right or privilege, in respect of scheduled international air services, granted by one
State to another State or States to fly across its territory without landing.
Advanced freedoms, from sixth to ninth freedoms, are also there, which can be made use
by the countries for liberal air transport activities.
In addition to bilateral agreements, multilateral agreements are signed among three or more
countries. 'Open Sky' agreement provides the freedom for airlines of two or more countries to
have frequent and less restricted flights in foreign countries. For shipping services, Maritime
Laws are applicable to streamline the water transport system. International Maritime
Organization (IMO), an agency of the UN, consolidates and ensures different conventions to
standardize the matters related to insurance claims linked to ships and cargo; civil matters
between ship-owners, seamen, and passengers; and piracy. These policies, regulations, and
guidelines have much significance in tourism as well. For instance, liberal air transport
regulations and policies usually become positive for tourist destinations. Liberal VISA policies,
international understanding, etc. are also essential formalities to be enforced for the tourist
destinations to attract more tourists. Engaging in open sky policy agreements with other
countries can help in enhancing the air accessibility of tourist destinations. Therefore, political
will and support are inevitable for favorable tourism transportation, which can help in tourist
attractiveness thereby making more inbound tourists into the destination.
As explained earlier, transport and tourism share an inextricable link, and the relationships are
mutual and complementary. Both are interconnected and complementary to each other in
promoting both sectors. Indeed, transport is a fundamental element in the tourism system, as
travel is the root cause of the tourism process. The process of tourism emanates by the travel and
visit of people from their origin place to a destination and return after the visit becomes possible
with the transport system. Destinations must be easily accessible to tourists. The rate of
accessibility is a key determinant in the success of destinations. Destinations within Europe get
numerous foreign tourists as many of the tourists generating countries are located within Europe
itself. International tourism thus gets increased significance by the proximity and accessibility of
the generating countries. The following are the major roles played by tourism transport in
modern tourism.
Travel experience is an important contributor to tourism. A bad travel experience can negatively
affect the experience of the tourist in the whole tour process. Thus, transport acts as a
determinant in the overall tourism experience. Through accessibility and by having flawless
transport options, destinations can attract more tourists to visit them. Moreover, the quality of
transport is a crucial element in the success of a destination. In addition, transport generates
different socio-economic benefits which are added to the tourism's overall benefits in the
destination. In the process of transport operation in the vast network spreading over word over,
income and employment are generated by the transport sector.
1. What do you mean by Freedoms of the Air and list the names of Freedoms of Air?
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3. What is the significance of regulations, procedures, and policies about good transport to
promote tourism?
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The second half of the twentieth century has seen the growth and transformation of tourism and
transport together and the analysis of the evolution of both the sectors revealed that both of them
complimented each other in their progress. Transport represents several types within it and those
are classified based on the medium of transportation. Every type of transportation, whether it is
land-based, water-based, or air-based, has a significant influence on international tourism.
Tourism requires the support of the transport sector inevitably and the destinations greatly
depend upon transport for their success. Quality transport infrastructure and services, together
with a high level of accessibility, are critical in a destination's competitiveness. Favourable
transport policies and regulations can open scopes for transport sectors to grow and operate and
support tourism to be promoted worldwide. Destinations integrated transport-tourism formulate
plans and strategies for destinations to compete in the international tourism market. Multimodal
transportation is promoted by destinations to enhance the efficiency of transport services. An
increased and efficient multi-modal transport system is important for growing tourism
destinations like India to become a top-class destination that attracts millions of tourists every
year.
1. Freedoms of the Air provide the right for the airlines of the respective countries to fly
over the territories of other countries based on signed agreements. It is given in detail in
1.3
2. The role of transport in Tourism is manifold and described in 1.4
3. The nature of the importance of transport regulations in tourism is given in 1.3
ACTIVITY
Visit a popular tourist destination near your place and understand the nature of the dependency
of tourism on transportation. Based on it, describe the tourism-transport relationship existing
over there and draw the inter-connectedness and route network of various transport forms.