business tourism

Business tourism

Business tourism or business travel is a more limited and focused subset of regular tourism. During business tourism (traveling), individuals are still working and being paid, but are doing so away from both their workplace and home.....

Father of Business tourism

Thomas Cook, (born November 22, 1808, Melbourne, Derbyshire, England—died July 18, 1892, Leicester, Leicestershire), English innovator of the conducted tour and founder of Thomas Cook and Son, a worldwide travel agency. Cook can be said to have invented modern tourism.

✓DEFINING TOURISM

         Individuals become tourists when they voluntarily leave their normal surroundings, where they reside, to visit another environment. These individuals will usually engage in different activities, regardless of how close or how far this environment (destination) is (Hall, 2008; Holloway & Taylor, 2006; Jafari, 2002). Therefore, tourists are visitors, and what they you do whilst visiting another place may be considered as tourism. Back in 1963, the United Nations Conference on International Travel and Tourism agreed to use the term ‘visitors’ (other than residents) to describe individuals visiting another country. This definition covered two classes of visitor: Tourists were classified as temporary visitors staying at least 24 hours in a destination. If they are travelling for recreation, health, sport, holiday, study or religious purposes, their visit could be categorized as leisure. Alternatively, excursionists, including cruise travelers may be considered as temporary visitors, if they stay in a destination for less than 24 hours. However, these definitions fail to take into account the domestic tourists. In 1976, the Institute of Tourism (which later became the Tourism Society) suggested that tourism is the temporary short-term movement of people to destinations outside the places where they normally live and work. Therefore, tourism includes the movement of people for all purposes, including day visits or excursions (Cooper, 2008; Holloway & Taylor, 2006).This broader definition was slightly reformulated at the International Conference on Leisure Recreation Tourism that was organized by the Worldwide Network of Tourism Experts (AIEST) and the Tourism Society in Cardiff, in 1981: Tourism may be defined in terms of particular activities, selected by choice, and undertaken outside the home environment. Tourism may or may not involve overnight stay away from home. In 1991, the United Nations World Tourism Organization declared that Tourism comprises the activities of persons travelling to and staying in places outside of their usual environment for not more than one consecutive year for leisure, business or other purposes. At this stage, one could differentiate between domestic and international tourism (Yuksel, 2004). The former refers to travel that is exclusively undertaken within the national boundaries of the traveler’s home country. The latter refers to travel within the borders of one’s home country. Domestic travel will have an impact on the balance of payments and will reduce the outflow of money from the tourists’ home country (Mathieson & Wall, 1982).

  

  

Some definitions of tourism exclude business travel. However, the United Nations World Tourism Organization (UNWTO) defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".

Primary business tourism activities include meetings, and attending conferences and exhibitions. Despite the term business in business tourism, when individuals from government or non-profit organizations engage in similar activities, this is still categorized as business tourism (travel).

✓Significance..

      Historically, business tourism takes the form of traveling to, spending money and staying abroad, being away for some time, and has a history as long as that of international trade. In late 20th century, business tourism was seen as a major industry

According to the 1998 data from the British Tourist Authority and London Tourist Board, business tourism accounted for about 14% of all trips to or within the UK, and 15% of the tourist market within the UK.A 2005 estimate suggested that those numbers for UK may be closer to 30%.Sharma (2004) cited a UNWTO estimated that business tourism accounts for 30% of international tourism, through its importance varies significantly between different countries.

✓Characteristics

Compared to regular tourism, business tourism involves a smaller section of the population, with different motivations, and additional freedom-of-choice-limiting constraints imposed through the business aspects.Destinations of business tourism are much more likely to be areas significantly developed for business purposes (cities, industrial regions, etc.). An average business tourist is more wealthy than an average leisure tourist, and is expected to spend more money.

Business tourism can be divided into primary and secondary activities. Primary ones are business (work)-related, and included activities such as consultancy, inspections, and attending meetings. Secondary ones are related to tourism (leisure) and include activities such as dining out, recreation, shopping, sightseeing, meeting others for leisure activities, and so on. While the primary ones tend to be seen as more important, the secondary ones are nonetheless often described as "substantial".

Business tourism can involve individual and small-group travel, and destinations can include small to larger meetings, including conventions and conferences, trade fairs, and exhibitions. In the US, about half of business tourism involves attending a large meeting of some kind.

Most tourist facilities, such as airports, restaurants and hotels, are shared between leisure and business tourists, through a seasonal difference is often apparent (for example, business tourism may use those facilities during times less attractive for leisure tourists, such as when the weather conditions are less attractive).

✓Business tourism can be divided into:

traditional business traveling, or meetings - intended for face-to-face meetings with business partners in different locations

incentive trips - a job perk, aimed at motivating employees (for example, approximately a third of UK companies use this strategy to motivate workers

conference and exhibition traveling - intended for attending large-scale meetings. In an estimated number of 14,000 conferences worldwide (for 1994), primary destinations are Paris, London, Madrid, Geneva, Brussels, Washington, New York, Sydney and Singapore

The words meetings, incentive, conferences and exhibition in the context of business tourism are abbreviated as MICE.

✓Importance of Business Tourism...

Firstly Economic Impact of Business Tourism

There is a strong and correlative relation between the national economy of the countries and business tourism. Because this sector usually would promote national industry, enhance communication channels and upgrade quality of manpower in different economic sectors, such as agriculture sector, petroleum sector, communication sector, tourism sector, education and training sector, health sector, vocational associations, etc

 

Business tourism is able to gain many economic fruits for the interest of the national economy. It is considered a key driver for temporary and permanent jobs. Many governments in the world list business tourism outputs within gross domestic products as well as while analyzing the cost output of public investment in the sector. The sector generates a large number of permanent and temporary jobs in the field of events' supply chain, organization and management in addition to accompanied services.

 

Many countries rely on business tourism for the provision of employments to their citizens. For example, the population of Melbourne city in Australia, is around 4 million people, over 22,000 of them are employed in the business tourism sector.

The business tourism sector has many other economic benefits which could be outlined as follows:

 

Direct economic impacts

Residence, transport and tourism services' expenses paid by the international visitors of exhibitions and conferences.

Growth of investments in business tourism, which includes establishing city centers, facilities of conferences and exhibitions, conference and exhibitions centers organizing companies, events organizing companies, suppliers of events, destinations management companies,, etc.

Growth of investments in business tourism, which includes establishing city centers, facilities of conferences and exhibitions, conference and exhibitions centers organizing companies, events organizing companies, suppliers of events, destinations management companies,, etc.

Revenues of owners and the organizing authorities of exhibitions and conferences including (sponsorships, registration fees, sale of exhibitors’ spaces, selling media , penalties, and gifts sales).

Revenues of business tourism suppliers.

Trade exchange and deals which are concluded during exhibitions and conferences.

Marketing products of sponsors of the conferences and exhibitions.

Rise of promotional activities.

Indirect economic impacts

Expenses paid by visitors of conferences and exhibitions to general services.

Expenses of gifts paid by business tourism visitors.

​Sales of farmers, factories and service suppliers.

Contribution of business tourism in urban development and development of infrastructure.

Highlighting investment opportunities in the destination in which the exhibition or conference is held.

Promoting investments in the destination in which the conference or exhibition is held.

Determining economic impacts of business tourism

Many countries survey economic impact of business tourism using a number of accounting tools such as:

~Expenditure range and quantity of liquidity flow.

• Use of multiple data.

•Input and output Analysis.

•Cost-benefit analysis.

Reports of the International Economic Forum, and the statistics of the World Tourism Organization, the International Congress and Convention Association (ICCA) put business tourism in the ranks of competitiveness among countries.

✓Secondly Tourism impact of business tourism

There is a great correlation between business tourism and tourism industry, especially the hotels, tour operators, travel agencies and the like activities and their mutual influence.

Meeting halls in Hotels represent key facilities for conference and exhibition, besides participants of the conference and exhibition reside in hotels too. Many countries associate their tourism strategies with the strategies of development of business tourism.

Tourism trip for the purposes of attending conferences and exhibitions represents over 15% of total of tourism in the world.

Tourism benefits from business tourism as follows:

Arriving tourists for the purposes of attending different kinds of conferences and exhibitions are the people who are mostly able to spend and are of high purchase power too.

Exhibitions and conferences rise the demand on tourism services and products during lull seasons and thus provide jobs.

Enhance tourist experience which leads tourist to extend residence period or repeat the visit.

Enrich event calendar in the destination.

Market and highlight potential of the destination.

Rise the demand on services, tour operators programs and tourist guides.

✓Thirdly Social impacts of business tourism

Business tourism is a fertile environment to make use of people’s leisure time. Besides voluntary work in business tourism is considered an important factor for young people to manage their time gainfully and for the acquisition experience.  

✓Fourthly Cultural impact of business tourism

Business tourism sector, through inviting international experts to participate in conferences and exhibitions, is largely contributing to drawing international latest experiments, knowledge and science. Business tourism activities, i.e. "conferences, seminars, forums" are considered distinctive means to develop competence of manpower in different public and private sectors, as well as it is an effective means for experience exchange, highlighting cultures and reviving traditions and heritage.

✓Fifthly Political impacts of business tourism

There are many political positives of business tourism which could be listed as follows:

Improving State's mental image.

Projecting State's leaders through their participation in the business tourism events.

Better means to enhance cultural dialogue. 

Enhancing political clout of the State.

Developing administrational competence of public officials.

• Beginners Guide to Starting a Tourism Business

✓Step 1: Decide on which sector of tourism you would like to focus. ...

✓Step 2: Take your geographical location into account. ...

✓Step 3: Size up the competition. ...

✓Step 4: Write a business plan. ...

✓Step 5: Procure the necessary funds. ...

✓Step 6: Select a business location.

Components of tourism: Structure of the tourism industry

The travel and tourism industry is argued by many as being the largest industry in the world. It is, therefore, no surprise that the structure of the tourism industry is quite complex, involving many components of tourism 

Top Tourism Business Ideas 2021

Vehicle Rental Business. 

Give travellers a unique experience with a unique vehicle rental business. ...

Guest House and Lodging. ...

✓Virtual Events Organiser. ...

✓Holiday Photography. ...

✓Airport Shuttle Service. ...

✓Travel Layby Service. ...

✓Cooking Classes. ...

✓ Souvenir Shop. 

The Nine (9) Pillars of Tourism

✓Transportation.

✓Accommodation/ Lodging.

✓Food and Beverage.

✓Travel Sectors/ Travel Agents.

✓Souvenirs and Handicrafts.

✓Attractions.

✓Entertainment.

✓Allied Services.

✓Tourism Planning and Development

Top Destinations in India for Business Travel

India is a land of not only rich heritage and culture but it has emerged to be one of the most superior players in business. With start-ups and entrepreneurs springing up everywhere there has become a huge flow of travellers going to one city or state to another for business matters. However, once you are done with your business meetings and important things in the day time, what do you do once you are free in a different town? travelling for business can be made fun when it is coupled up with going for sightseeing and absorbing the culture. Although travelling is mostly paired with vacation and holidaying with your friends and families but nowadays people are trying to make the most of your out of town business trips by also going on some interesting sightseeing expeditions.

Here are the top destinations to travel to on business trips in India:

Bangalore

bangalore palaceUndoubtedly the hub for IT and known as the Silicon Valley of India, Bangalore tops the list for the best business destination. Apart from some of the top schools and colleges it also comprises of top-notch infrastructure, good housing locations, great connectivity, world class malls, interesting places to eat and of course the perfect atmosphere. After some meetings you can go and check out the local sightseeing places like the Bangalore palace, Cubbon Park and shop at MG road. Night hikes around Bangalore is also a good option to rejuvenate yourself amidst nature after a day’s hard work, or visit wonder la water park to freshen yourself up.

Gujarat

Rann of KutchThe westernmost state of India, Gujarat has always attracted businessmen and traders ever since the ancient ages due to its location right next to the ocean. Its trading, import and export history to the rest of the world can be traced back to the stone ages and this has carried on till present day. People from not only from India but also from across the globe come here as a part of their business trip as a lot of production and resources are found in Gujarat. People can visit places like the great Rann of Kutch, Gir National Park etc. going on these refreshing trips in and around the city will enable you to recharge your mind, body and soul and make the most of your trip here.

Suggested Tour : Rann Utsav Tour

Chennai

marina beachChennai is India’s one of the most world popular destinations for industrial and economical functioning in India. It is not only one of the most preferred destinations for travel but is also the perfect place to do business since there is no dearth of able hep here. it has risen up to the status of being one of the most well developed, loaded and highly connected places to visit in India. The quality of hotels and transportation here is simply impeccable and makes your stay here and getting around easy and very convenient. Some places where you can relax after a stressful day is at the marina beach, shop at the many market places and malls or try out the authentic taste of south India as well.

Mumbai

gateway of IndiaThe city of dreams, Mumbai city is located on the banks of the roaring sea of Arabian and makes it the perfect place to not only stay but also for business purposes. The population here indicates that it has the perfect amount of human capital which propels it further to develop energy supply, mobility, infrastructure, services, job opportunities etc. there are several factories here that provide resources to the rest of the Indian subcontinent and people travel far too often to Mumbai as a part of their business trip. Some places for sightseeing that will definitely add a charming twist to your plans include – gateway of India, marine drive, Juhu beach, Colaba Causeway etc.

Pune

This relatively new city which is situated in close proximity to Mumbai has quickly emerged for being one of the most noted places for business. Kids come to this scenic city for its colleges and schools which are very well renowned and popular across India. However ever since its conception Pune has also emerged to be one of the front runners for being one for the top destinations for travelling for business purposes. There is no dearth of automotive companies, and IT companies here making it a hotspot for business activities. The office availability and the city culture here sets the perfect environment for successful meetings and good mood.

Indore

Deemed for being the richest cities of Madhya Pradesh, Indore is the hub for various business and service activities. It is a store house for human capital and energy supply. It is also a very eco-friendly place which is a rare in India but the natural beauty here is simply stunning. the mobility here is very smooth and convenient due to the presence of several active and efficient modes of public transport and good quality of well-maintained roads. Although some more development work needs to go into creating ground breaking changes but all in all there are several opportunities for one to explore, work and travel here at the same time.

Delhi

delhiFamous for being the seat of power of India and with the presence of Supreme Court here Delhi has always been the best place for business travels. It is the hub for textile trading, automobile companies and the region of NCR surrounding it has also over the period of time developed into a conglomerate of companies which have been helping in the development of India. Travelling to Delhi for business is the perfect thing to do since due to its connectivity and convenience of availability of literally everything makes it the perfect place. Here you can visit places like Connaught place for Shopping, Chandni Chowk for food and sightseeing of red fort and Jama Masjid. It surely is one of the best places for immersing yourself in the rich cultural history and being a part of the heritage left by its past rulers.