National organizations

The tourism policies of a nation are developed by and implemented through a national tourism organization (NTO).

Objectives

The major objectives of an NTO are economic. They seek to improve the export earnings of the country by attracting more tourists. In this way it is hoped that the economy will expand, increasing the number of jobs, income, and taxes while promoting regionally balanced economic growth.

Tourism has also proven to be useful in protecting a nation's heritage—its buildings and its traditions. In some situations, buildings or customs have been protected on the economic grounds that they are important to the visitor as attractions. For the locals, their heritage is maintained. Some countries use tourism as a political tool to show the world how successful they have been.

Structure

The way in which tourism is represented at the national level is a function of the political philosophy of the country and the importance it places on tourism.

Ministry. National tourism organizations tend to take one of three forms. First, they may be an independent ministry or part of a larger ministry. The State Secretariat for Tourism in Mexico is an independent ministry, whereas in France the responsibility for tourism comes under the Ministry of Free Time. Fifteen countries have autonomous ministries of tourism, while others place the responsibility for tourism under any of the following ministries: Commerce (or Commerce and Industry), Development, Economic Affairs, Education, Finance, Information (or Culture and Information), State or Transport (or Transport and Aviation, Transport and Power, Transport, Telecommunications and Tourism or Transportation).

Department. Second, tourism may be represented by a government agency or within a bureau that is part of a larger department. Tourism Canada is part of the Department of Regional and Industrial Expansion, while the Japanese Department of Tourism finds itself in the Department of Transportation. Tourism bodies that have government status have the broadest range of functions of the NTOs.

Quasi-public. A third type of national tourism organization is where the official agency is a quasi-public government-funded corporation, board, or authority, such as the Hong Kong Tourist Association, the Irish Tourist Board, or the British Tourist Authority. A major advantage of this form of organization is the greater flexibility in dealing with the private sector in the areas of development and promotion. People from the private sector are often asked to serve on the board as directors.

A planned economy in which tourism is highly regarded would tend to place tourism in the first type of organization (ministry), whereas a market economy in which tourism is not regarded as very important will tend to see tourism found in one of the latter organizations (department or quasi-public corporation).

One of the problems for tourism in its attempt to be recognized is in knowing where to place it. Tourism, as we have seen, is a diverse activity, being represented in the United States in 30 sub-industries. It is difficult to get all industries and all trade associations to speak with one voice.

It is also a fact that other and more powerful agencies of government may see the encouragement of tourism as working against their own stated purposes. Attempts to ease entry restrictions into the United States, for example, have been viewed with alarm by those who have the responsibility to keep out drugs and undesirable characters.

Functions

What the NTO does is a reflection of how it is organized. In a free market economy the functions revolve around the encouragement of tourism; in a planned economy the state may get into developing and managing tourist attractions and facilities.

Most all organizations are involved in the promotion of tourism to the country; many operate offices abroad. The vast majority of NTOs collect tourism statistics while most also conduct some type of market research. To a lesser extent, organizations get involved in the areas of regulation and licensing for hotels, travel agencies, tour guides, and interpreters. In Mexico, the NTO regulates the prices of hotels, restaurants, tourist guides and travel agencies, while in Japan it licenses travel agents and examines guides and interpreters.

Many NTOs are responsible for drafting national and regional tourism development plans. This is true in such countries as Canada, Mexico, England and Spain.

Moreover, NTOs may also get involved in operating hotel schools or offering vocational training for guides and interpreters. A lesser number are actually involved in operating resort facilities.

In order to function effectively, a national tourism organization must have:

United States

The organization of tourism at the national level in the United States has been, and continues to be, hampered by the fact that so many of the prerequisites for effective function have, and are, missing.

US Travel and Tourism Administration. The prime government agency involved in tourism in the United States is the US Travel and Tourism Administration (USTTA). Authority for tourism development and promotion has changed from one agency to another.

In 1940, Congress passed the Domestic Travel Act authorizing the National Park Service, through the Department of the Interior, to promote travel within the United States and its territories and possessions as long as such activities did not interfere with those of the private sector. The entry of the United States into World War II in 1941 halted any plans for encouraging domestic travel. Gasoline was rationed and passenger traffic across the Atlantic curtailed. After the war the National Park Service had little budget. In addition, its priority was the expansion of park facilities to meet the numbers of visitors. No attention was given to encouraging domestic travel, and funding for this program was not renewed.

At the same time, Americans were encouraged to travel to Europe as a means of helping the European economies. It was felt that the inflow of US dollars would stimulate demand on the part of Europeans for American goods. Many European countries were restricting foreign travel by their own nationals because of the need for American dollars. The result was a tourism balance of payments deficit for the United States.

In 1958, the Office of International Travel was formed in the Commerce Department to act as a government spokesperson for tourism and act as liaison between private industry and the various government agencies whose activities affected tourism. Information about the United States was distributed through consular and diplomatic offices. As a rule this is an unsatisfactory method of promoting tourism. Such offices are primarily concerned with matters other than encouraging travel. Tourism promotion is given little, if any, attention. Diplomatic offices tend to be located in areas that are not readily accessible to potential travelers.

In 1960 United States President Dwight D Eisenhower proclaimed a "Visit USA Year" but felt that government should not promote and advertise travel.

The International Travel Act of 1961 made the United States Travel Service part of the Department of Commerce. The agency was authorized to set up offices overseas to promote the United States. Its goals were to:

The agency was to promote travel to the United States, to encourage the provision of facilities for visitors, to coordinate travel facilitation among the various government agencies indirectly involved in tourism with a view to reducing the barriers to travel, and to collect and publish tourism statistics.

In 1970, the United States Congress authorized matching funds to states or nonprofit organizations for projects aimed at attracting foreign travel to the United States. At the same time the director of the agency was given the rank of Assistant Secretary of Commerce for Tourism.

The authority for domestic tourism, which had been given to the Secretary of the Interior in 1940, was given to the United States Travel Service in 1975.

After an eight year lobbying effort, the US government accepted the need for a national tourism policy, but rejected the recommendation for an independent agency to carry it out. The National Tourism Policy Act of 1981 resulted in the creation of the US Travel and Tourism Administration (USTTA), headed by an Under Secretary of Commerce for Tourism (an elevation from assistant secretary). The act stated that:

A Travel and Tourism Advisory Board, made up of representatives of private industry, organized labor, academics, and the public sector, was set up. The Secretary of Commerce was to chair a Tourism Policy Council comprised of representatives of the Office of Management and Budget, the Commerce Department's International Trade Administration, and the Departments of Transportation, Interior, State, Labor, and Energy. All these agencies impact tourism. The council was given the task of coordinating federal programs and policies that affect tourism, recreation, and heritage resources.

The undersecretary oversees four offices—policy and planning, research, management and administration and marketing. These offices reflect the programs of the USTTA.

Controversy still exists over the role of the government in tourism in the United States. Opponents of government intervention argue that only a few businesses involved in tourism are affected by an increase in tourism. As such, it is inappropriate for the government to spend public funds for an activity that will benefit relatively few people. The private sector should spend the money for tourism development, research, and marketing. On the other side of the issue are those who argue that the balance of trade is a federal issue and that the travel deficit is a public and a federal concern. The encouragement of tourism will have ramifications greater than some private businesses making a profit.

Over the years the responsibility for tourism has been given to government officials whose authority has gradually been increased. The top tourism government person went from director to assistant secretary to undersecretary. This reflects a growing realization of the importance of tourism. However, the agency involved in tourism has had constant battles over funding to do the job assigned to it. It has consistently been underfunded. As a result, the agency has not been able to achieve many of its goals. Thus, it remains to be seen whether future administrations will give tourism affairs sufficient funds to accomplish its purpose.

Other agencies. There are over 150 different programs in approximately 50 different agencies or departments that affect tourism, travel or recreation in the United States. The effect is felt primarily in two areas: natural resources and facilitation.

Of the 760 million acres (307,561,088 hectares) of land owned by the federal government, 447 million (180,894,482 hectares) have been set aside for recreational use by tourists. Federal lands represent approximately 85 per cent of the recreation space in the United States. The natural resources of the United States are the responsibility of the Department of the Interior, the Department of Agriculture and the Department of Defense in addition to several other independent agencies.

The Heritage Conservation and Recreation Service (HCRS), formerly the Bureau of Outdoor Recreation, is responsible for research, development, planning, and maintaining a comprehensive nationwide outdoor recreation plan. The HCRS can only make recommendations on recreation policy, planning and research, and has no authority to manage land, water and recreation areas. That authority lies primarily with the Corps of Engineers, the US Forest Service and the National Park Service.

The Corps of Engineers, part of the Department of Defense, is responsible for navigation, control of beach erosion, hurricane flood protection, major drainage, flood control and water resources on both federal land waterways and improved inland and inter-coastal waterways. Recreation is taken into account in cost/benefit analyses to determine whether or not to undertake a project. While recreation areas at project sites are operated by the Corps of Engineers, it prefers to turn operation over to nonfederal units.

The US Forest Service, which is part of the Department of Agriculture, controls both national forests and national grasslands areas. About half of the nation's ski areas operate under permit and on lands managed by the US Forest Service.

Lands managed by the National Park Service (NPS) in the Department of the Interior are an attraction for millions of visitors each year. While the original purpose of the NPS was the preservation of the unique natural wonders of the country, subsequent legislation added historic preservation, intensive outdoor recreation and cultural activities to the list.

Within the area of natural resources the debate continues to be the extent to which resources should be preserved or developed. Tourism is heavily dependent on the natural resources of an area. A certain amount of development is, however, necessary to cater to the needs of the traveler. The debate focuses on the balance between the two.

The Departments of State, Transportation, Treasury and Justice are concerned with the facilitation or movement of tourists. The US Travel and Tourism Administration has worked with these federal departments in an attempt to reduce the barriers to travel. It is possible, for example, to go through US customs in Toronto before boarding a flight to the United States. A 1986 bill passed by the US Congress includes a section that permits waiver of visa requirements for tourists from as many as eight countries that provide reciprocal waiver rights. In general, however, the interests of national security have come before the interests of travelers, and the principal concern remains making sure that people do not enter the country illegally or bring illegal items in with them.

Tourism Canada

Tourism Canada is the government agency responsible for tourism in Canada. It is part of the Department of Regional Industrial Expansion (DRIE), which encourages development in manufacturing, resource processing, tourism and small businesses. Overseas activities involving tourism are handled through the Department of External Affairs. The DRIE, however, remains responsible to the Canadian government for the overall tourism program.

Based in Ottawa, Tourism Canada is charged with formulating national policy in the areas of development and marketing. These are translated at the local level by Regional Executive Directors, one to each province, in a fairly decentralized way.

There are three main activities of Tourism Canada: marketing, corporate affairs, and general development. Within the area of marketing there are directors of development marketing, development US, development overseas and development Canada. The director of development marketing is responsible for strategic planning in the area of marketing, identifying future potential markets with high potential.

The US market is responsible for over 90 per cent of all foreign visitors to Canada. Because of this, a director is assigned to coordinate activities relating to American visitors. Advertising is aimed at auto travelers within 400 miles (approx. 1035 kilometers) of Canada, bus travelers up to 600 miles (approx. 1553 kilometers) away and air travelers and convention groups at longer distances.

Overseas offices are maintained in seven countries. Advertising is aimed at the tourist and the travel trade, both wholesalers and tour operators.

Domestically, Tourism Canada seeks to encourage Canadians to vacation in their own country.

In the area of development, Tourism Canada is concerned with the overall tourism product. Whereas in marketing the concern is demand, in development the concern is supply. A number of agreements have been worked out on a 50/50 to a 90/10 cost-sharing basis between the central government and the provinces to encourage various tourism projects. These show promise of stimulating the economy and generating jobs. Efforts are also underway for the stimulation of development by the private sector in tourism.

The corporate affairs group is responsible for guiding the overall direction of Tourism Canada. This group advises senior management on the future direction of the program, what policy issues should be considered and how to respond to the various concerns of the industry. Members get involved in research, maintain an inventory of package tours to Canada and coordinate with tourism organizations in the provinces of Canada as well as with international tourism groups.

Mexico

The public sector is more involved in tourism in Mexico than in any of the other countries discussed thus far. Since 1974, the principal national tourism organization of Mexico has been the Secretariat of Tourism, which is responsible for overall tourism policy and for the regulation of both prices and the quality of services of the various industries that are part of tourism. Planning and developmental assistance are given to the private and public sectors in addition to operating the Green Angel program. The Green Angels are tow trucks, painted green, that offer emergency help to stranded motorists.

There are two branches of the Secretariat of Tourism, one for planning and one for operations. The Sub- secretariat for Planning is primarily responsible for the development of a national tourism plan. Such plans consider, amongst other things, the role of tourism in the Mexican economy, the appropriate role of the public sector and the setting of objectives for tourism.

The Sub-secretariat for Operations regulates hotels, travel agencies, tourist guides, coffee shops and equipment- rental firms and also supervises tourist services and the Green Angels.

In 1961, a National Tourism Council was established to offer advice on tourism studies and promotion. Made up of five members appointed by the president of Mexico, the council has, since 1977, been responsible for overseas promotion. Only one of the members is from the private sector.

The National Fund for the Promotion of Tourism (FONATUR) provides funding for government-approved tourism projects. Members are involved in buying real estate, in developing new areas, in promotion and in giving credit to those involved in approved tourism projects.

The final agency of the organization is Nacional Hotelera (a government-owned hotel company) that receives its funding from FONATUR.

As can be seen from this section, the degree of government involvement in tourism depends upon how tourism is recognized and organized at the national level.