CU-BSC.TTM-SEM-IV-Tourism policy & Planning

BACHELOR OF SCIENCE TRAVEL AND TOURISM MANAGEMENT SEMESTER-IV TOURISM POLICY AND PLANNING

CHANDIGARH UNIVERSITY Institute of Distance and Online Learning SLM Development Committee Prof. (Dr.) H.B. Raghvendra Vice- Chancellor, Chandigarh University, Gharuan, Punjab:Chairperson Prof. (Dr.) S.S. Sehgal Registrar Prof. (Dr.) B. Priestly Shan Dean of Academic Affairs Dr. Nitya Prakash Director – IDOL Dr. Gurpreet Singh Associate Director –IDOL Advisors& Members of CIQA –IDOL Prof. (Dr.) Bharat Bhushan, Director – IGNOU Prof. (Dr.) Majulika Srivastava, Director – CIQA, IGNOU Editorial Committee Prof. (Dr) Nilesh Arora Dr. Ashita Chadha University School of Business University Institute of Liberal Arts Dr. Inderpreet Kaur Prof. Manish University Institute of Teacher Training & University Institute of Tourism & Hotel Management Research Dr. Manisha Malhotra Dr. Nitin Pathak University Institute of Computing University School of Business © No part of this publication should be reproduced, stored in a retrieval system, or transmitted in any formor by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the authors and the publisher. SLM SPECIALLY PREPARED FOR CU IDOL STUDENTS 2 CU IDOL SELF LEARNING MATERIAL (SLM)

First Published in 2021 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event the Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. CONTENT Unit - 1: Concept Of Policy................................................................................................... 5 Unit - 2:Government Role In Tourism Policy Formulation .................................................. 19 Unit - 3: International Agreement I...................................................................................... 30 Unit - 4: Agreement II......................................................................................................... 48 3 CU IDOL SELF LEARNING MATERIAL (SLM)

Unit - 5: Touirsm Plans & Policies In India -I...................................................................... 64 Unit - 6: Touirsm Plans & Policies In India-II ..................................................................... 76 Unit -7: Tourism Policy Initiatives For Development -I....................................................... 84 Unit - 8: Tourism Policy Initiatives For Development -II .................................................... 96 Unit - 9: Resources Of Funding ......................................................................................... 116 Unit - 10: Planning For Tourism Destinations -I................................................................ 133 Unit - 11: Planning For Tourism Destinations -II............................................................... 147 Unit - 12: Destination Life Cycle....................................................................................... 159 Unit - 13: Community Based Approach For Tourism Planning -I ...................................... 172 Unit - 14: Community Based Approach For Tourism Planning-II ...................................... 193 4 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 1: CONCEPT OF POLICY STRUCTURE 1.0 Learning Objectives 1.1 Introduction 1.2 Tourism Planning- Meaning, Nature and salient features 1.3 Importance of Tourism policy 1.4 Formulating Tourism Policies 1.5 Origin of Tourism Policy in India 1.6 Conclusion 1.7 Summary 1.8 Keywords 1.9 Learning Activity 1.10 Unit End Questions 1.11 References 1.0LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe Tourism Planning- meaning & Significance  Explains the Tourism Policy in India  State the need of Tourism planning  List the Five-year plans in implementing the Tourism Policy. 1.1INTRODUCTION What is Tourism Planning? Tourism Planning is the process for tourism development. Planning refers to methods and means used in making decisions about the future. Tourism Planning helps in problem solving and arriving at decisions which help planner in achieving desired objectives. Planning for 5 CU IDOL SELF LEARNING MATERIAL (SLM)

tourism is very crucial. Several Countries of the world, especially the developing countries have lately realized the importance of tourism and benefits which it brings out. The use of macroeconomic planning techniques for tourism sector are relatively new .The use of macroeconomic planning methods for national economic development which have been largely utilized since the end of world war second, did not always cover tourism development as a particular field. The increasing significance of tourism as a source of income, employment generation, regional development, foreign exchange and major factor in balance of payment for many countries has been attracting the attention of many government as well as others with an interest in economic development . Tourism emerged as the largest global industry of the 20th century and is projected to grow even faster in the 21th century. India has immense possibilities of growth in the tourism sector with vast culture and religious heritage, varied natural attractions, but a comparatively small role in the world tourism scene. Tourism policy strengthens the tourism sector and envisages new initiatives towards making tourism the catalyst in employment generation, environmental regeneration, development of remote areas and development of women and other disadvantaged groups in the country. It would lead to larger foreign exchange earnings and create conditions for more foreign direct investment. 1.2 TOURISM PLANNING - MEANING, NATURE AND SALIENT FEATURES Tourism development refers to the growth and maintenance of the tourism industry in a given locality. The basic aim of the tourism policy is to provide a framework for tourism development by establishing goals and setting out the guidelines in order to achieve them. But in broader term, it gives a framework in context to the societal, social and political setup present. In order to make a tourism policy stakeholder perspective is very important. As it helps us to understand the issues related to social, cultural and other perspectives, which give 6 CU IDOL SELF LEARNING MATERIAL (SLM)

a strong foundation framework to the policy. Further this helps to lay down sound skeleton for the overall mission and vision of the tourism policy. Before making a tourism policy, it is also important to examine the resources, which are present in the tourism destination / region / country. The resources include the natural resources, cultural resources and the resources created by man. Here, the infrastructure and the supra-structure facilities also play a vital role and their examination helps to evaluate the asset inventory along with the infrastructure framework available. Asset evaluation or in other words, SWOT Analysis helps in deciding the future course of action. It validates the ground scenario and helps in setting the goals. Edward Inskeep, a tourism expert, validates that policies by and large develop from surveys and research studies of the current tourism patterns, infra-structure & supra-structure analysis, tourism attractions, amenities, services. It shapes the tourism policy by highlighting the necessities and sets the development activity in various perspectives through sustainable development. Generally, the tourism policy goals and features are largely dependent on the sound understanding of the environment, stakeholder perspectives with a long term aspirations by integrating local / regional and national plans. The goals of tourism policy can be limited or manifold such as:  To see the interests of the community i.e. economic, social, cultural and ecological aspects.  To promote harmony between hosts and guests.  Local control.  Visitor fulfillment  To enhance local community participation and involvement.  To improve the facilities for guests as well as hosts.  To enhance the universal brotherhood through awareness and activity.  To preserve what we have inherited from our ancestors and pass it in a reasonable way to our future generations (Intergenerational equity) 1. 7 CU IDOL SELF LEARNING MATERIAL (SLM)

 To sustain equity between people of the same generation (Intergenerational equity) 1. This includes considerations of distribution of resources and justice between nations or within a nation.  Local equity and pro-poor tourism  Resource quality and efficiency.  To protect the cultural and natural resources of the communities.  To enhance the livelihood opportunities to the local community.  To promote regional development and harmony.  Increased income and revenue generation.  Augment neo-employment opportunities.  Minimizing negatives and enhancing or reaping positives. The characteristics or attributes of a tourism policy is largely determined on –community attributes & attitude, the contribution of tourism to the overall economy, the tourist pattern & attributes, the level of infrastructure, motivation level of the government, the local resources available and the environment of the tourist destination. Attributes of a tourism policy generally include the following aspects:  It is concerned not with politics, but on sound principles and broad goals of that guide the actions of the government body.  The nature of tourism destination attributes also influences the features of tourism policy. For example, if the tourist destination is a national park and comprising largely of forest region. The role of the local factors will be defined, emphasizing on the protection and preservation of the region and less attributed to mass construction and mass movement.  The goals of tourism policy largely determine the attributes of the tourism policy.  The policy domains highlight the type of tourism development an area experiences.  In order to augment the tourism infrastructure and transportation, various schemes are also part of tourism policy.  To infuse innovation with involvement of green practices, also makes the policy sustainable, futuristic and acceptable by the public. 8 CU IDOL SELF LEARNING MATERIAL (SLM)

 The geographical position of the tourist destination and nature of tourist development, also influence the tourist development.  Positioning tourism as a growth engine for growth in terms of economic, social, cultural and ecological aspects.  Tourism policy defines and explains the role of the stakeholders. It clarifies the role of the government, private agencies and tourism industry.  Developing and creating tourism integrated circuits on the basis of attributes & resources of the regions through involvement of private, state and other agencies.  Sound tourism policy are based on proper market research and thorough understanding of the destination/region environment which include the natural & other attributes like culture, demography, topography etc.  The tourism policy should not be cut, copy and paste of other destinations tourism policy, but should be result of vigorous SWOT Analysis and based on the true spirit of India which would reflect the adoption of strategies, which are not alien to the country, but unique as the tourism product of the destination.  The government financial incentives for the tourism sector are also part of the tourism policy. They may be taxes or subsidies intended to promote & encourage tourism activities.  Government regulations are also made part of tourism policy to prohibit or promote certain activities, which would help in promotion of tourism & minimize the negative impacts.  Also, the tourism policy is overhauled with introduction of certain aspects & discontinuing certain aspects.  Technology innovation and modernization is at times made compulsory for tourism organizations and institutions to enhance the experience of the visitors and make it more customers friendly. For example, electronic ticketing, smart cards, information kiosks, intelligent transportation systems etc.  Apart from the benefits, tourism policies also emphasize on education and training to enhance the skills of the work force (hard, soft & job related) 9 CU IDOL SELF LEARNING MATERIAL (SLM)

On a basic level, tourism development can be defined as creating strategies and plans to increase/develop/encourage tourism for a destination. The fundamental reason behind planning and implementing strategies for developing the tourism sector is primarily to make money and to subsequently increase the GDP of a country/area. Tourism development consists of many elements including, but not limited to: developing and managing private-public partnerships, assessing the competitors to gain competitive advantage, ensuring responsible and sustainable development, viewing tourism as an interconnected system and a demand-drivensector, assessing private sector investment and international cooperation, tourism clustering and involvement by the Government. According to Williams cited in Mason (2003);‘The aim of modern planning is to seek optimal solutions to perceived problems and that it is designed to increase and, hopefully maximize development benefits, which will produce predictable outcomes. And Getz (1987) cited in Pearce (1989) defines tourism planning as;“A process, based on research and evaluation, which seeks to optimize the potential contribution of tourism to human welfare and environmental quality” 1.3IMPORTANCE OF TOURISM POLICY The tourism policy is an important tool in developing the tourism product and environment of the place. It highlights the important tourist areas, resources and help in tourism development. The significance of tourism policy is:  The tourism policy gives a direction to the development of tourism by focusing the core areas of tourism in an area.  It defines the responsibility & jobs of various stakeholders and help in developing the tourist activity.  The framework takes care of both hosts &guests, and of course their synchronization.  It examines the present environment and guides the tourism aspects of region by emphasizing on future prospects.  It emphasizes on planning and management. And accentuates on environmental sustainability, socially beneficial ability and economic viability.  It always promotes Intergenerational equity and Intergenerational equity.  It helps in limiting negative impacts and enhancing positive impacts. 10 CU IDOL SELF LEARNING MATERIAL (SLM)

 It helps in proper land use planning, efficient resource utilization and appropriate planning initiatives.  It not only directs the locals, but also the tourists to understand their rights and of course the duties to the destinations they visit.  It necessitates to develop infrastructure, transport and Suprastructure (if required); without misutilization of resources. 1.4FORMULATING TOURISM POLICIES NATIONAL TOURISM POLICY, 2002 India introduced the first tourism policy in 1982, after the planning commission recognized tourism as an industry on June 2002. Further, it was in 1986 that the planning commission of India formulated National committee on tourism in order to put together plans for tourism sector. As a result, it was only in May 1992, that National Action Plan for tourism was proclaimed and is considered as a landmark plan in the history of the tourism planning in India. It emphasized on developing tourist areas, domestic tourism, preserving environment and culture, international tourism, improving India’s percentage in world tourism and increasing employment opportunities in tourism sector. 11 CU IDOL SELF LEARNING MATERIAL (SLM)

The planning of tourism in India further improved with Seventh (1985-89) and Eighth Five Plan (1992-97). Finally, it was the introduction of the National Tourism Policy in 2002, which positioned India as a major engine of growth in economic, social & other aspects. It emphasized on the phenomenal employment and livelihood opportunities created by the tourism industry Basic principles of the National Tourism Policy 2002: 1. Tourism has been recognized as an engine of economic growth throughout the world and if India has to be part of this revolution, it will have to adopt new strategies, tools and techniques. India contributes 0.38% of the world tourist traffic, which is very meager figure. 2. A framework needs to be developed which is government led, private sector driven and 12 CU IDOL SELF LEARNING MATERIAL (SLM)

community welfare oriented. The role of both government and private sector is very important. 3. Our culture plays an important role in Tourism. Hence, improvements and environmental up gradation of the protected monuments and its vicinity is very important. 4. Effective linkages developed with other departments & sectors such as Aviation, environment, railways, home etc. 5. Sustainable development is the key factor for the tourism policy. 6. Concepts like ecotourism concepts should be emphasized and sociocultural aspects such as poverty reduction, no gender disparity, preserving cultural heritage should be promoted. 7. Special thrust areas such as rural tourism should be promoted, where our original natural and cultural visits exist. 8. Importance given to rural tourism. 9. Youth is a new class which has emerged in tourism. Also, this class doesn’t need any elite but ordinary facilities which can be improved through involvements of Panchayats, local bodies and associations. 10. Special attractions of Indian tourism such as yoga and cuisines developed. 11. Code of ethics should be there for tourism professionals. 12. We should properly project our tourism product in International Arena and make our presence felt. 13. The civilization issues such as ethics and good governance made part of the tourism policy.  Tourism is seen as a priority sector because:  It helps to maximize the productivity of India’s natural, human, cultural, technical resources and supports sustainability.  Providing high quality of employment.  Focuses on rural areas with appropriate and relatively low cost programmes.  Have extensive forward and backward linkages, that helps in employment, income generation etc.  Leads to Forex earning and balance of payments.  Promotes international fraternity and peace. 13 CU IDOL SELF LEARNING MATERIAL (SLM)

1.5 ORIGIN OF TOURISM POLICY IN INDIA Tourism planning in India was started after Independence. The conscious and organized efforts to promote tourism in India were made in 1945, when a committee was set up by the Government under the leadership of Sir John Sargent, then Educational Adviser to the Government of India (Krishna.A.G. 1993). Thereafter systematic tourism development took place in India. The tourism planning approach has been evolved in Second and Third five year plans. The sixth five year plan emphasizes tourism as an instrument for economic development, integration and maintains social harmony. After 1980s tourism activity gained momentum as employment generator, source of income, foreign exchange earnings and as a leisure industry. The government has taken several significant measures to promote tourism industry. 1.6 CONCLUSION Tourism development and Tourism policy are closely interrelated aspects. Tourism development largely depends on tourism policy. Tourism is a very important segment of an economy. Economic development of any nation, whether developing, developed or underdeveloped country is significantly influenced by tourism sector. Therefore, every country in the world has formulated number of tourism policies for the development of tourism sector. Indian Government also has undertaken number of initiatives to attract both domestic and foreign visitors. Expansion of tourism infrastructure, development of tourism spots, evolution of new tourism products Public Private Partnership are a few measures. In 14 CU IDOL SELF LEARNING MATERIAL (SLM)

post independent period Government of India, Department of Tourism has introduced number of policies for the development of tourism sector in India. Tourism was recognized as an industry by the Planning commission of India and was included in the Concurrent List of Indian constitution to provide Constitutional recognition to the tourism sector and help in channelizing development of tourism in a systematic manner by enabling the Central Government to bring in legislation governing the activities of various service providers in the tourism sector. As a result tourism sector is increasing rapidly attracting a large number of visitors towards India and generating large employment and income earning opportunities. 1.7SUMMARY  Tourism Policy is generally considered to be an area of a nation’s overall economic policy.  It is a public policy designed to achieve specific objectives relevant to tourism established at the municipal, state or federal level.  The National Tourism Policy, 2002 of India aims that tourism can be used as a development tool, e.g., that it can generate high quality, mass employment and prosperity among vulnerable groups in backward areas.  Focus should be placing India as a worldwide brand so as to benefit from escalating travel and trade globally and the infinite potential in India that has not been tapped as a tourist destination over the years. 1.8 KEYWORD  Tourism Planning―small-scale financial services primarily credit and savings— provided to people who farm, fish or herd‖ and adds that it refers to all types of financial services provided to low-income households and enterprises.  Macroeconomics planning techniques- An entrepreneur is a person who has possession over a new enterprise or venture and assumes full accountability for the inherent risks and outcome. The term is a lone word from French and was first defined by Irish economist Richard Cantillon A female entrepreneur is sometimes known as entrepreneurs. However, Entrepreneur in English is a term applied to type of a personality who is willing to take upon herself or himself a new venture or enterprise and accepts full responsibility for outcome. (Veira, X. (2008). 15 CU IDOL SELF LEARNING MATERIAL (SLM)

 Tourism Policy –Tourism policy is a set of discourses, decisions, and practices driven by governments, sometimes in collaboration with private or social actors, with the intention to achieve diverse objectives related to tourism.  International fraternity-National/international – a fraternity or sorority with two or more chapters, both of which are in the same nation (in the case of a national), or at least one of which is in a different nation from the others (in the case of an international).  Private-public partnerships-A public–private partnership is a cooperative arrangement between two or more public and private sectors, typically of a long-term nature. In other words, it involves government and business that work together to complete a project and/or to provide services to the population. 1.9LEARNING ACTIVITY 1. Importance of Planning in Tourism ___________________________________________________________________________ ___________________________________________________________________________ 2. What are the goals of Indian Tourism Department? ___________________________________________________________________________ ___________________________________________________________________________ 1.10UNIT END QUESTIONS A. Descriptive Questions 16 Short Questions: 1. Define Tourism Planning? 2. Why Planning is Important in Tourism? 3. What is National action Plan? 4. What is tourism development? 5. What are the Characteristics of Tourism Policy? Long Questions: 1. What are the components of Tourism planning? 2. Describe the origin of Tourism Policy in India? CU IDOL SELF LEARNING MATERIAL (SLM)

3. What is the significance of tourism planning In India? 4. Explain the National tourism policy 2002. 5. Explain the importance of tourism planning in a India. B. Multiple Choice Questions 1. Tourism planning is a process of tourism _______ a. Development b. Growth c. Techniques d. Tools 2. Tourism planning in India was started after independence in a. 1947 b. 1956 c. 1945 d. 1950 3. The First Tourism policy was announced by the Government of India on_________ a. Jan 1982 b. Nov 1982. c. Dec 1983 d. Nov 1983 4. The conscious and organized efforts to promote tourism in India were made in a. 1982 b. 1993 c. 1983 d. 1945 5.Tourism activity gained momentum as employment generator after _ 17 a. 1980’s b. 1990’s CU IDOL SELF LEARNING MATERIAL (SLM)

c. 1900’s d. 1800’s Answers 1-a, 2-c, 3-b, 4-d, 5-a 1.11 REFERENCES References book  Bezbarua M.P, Indian Tourism Beyond The Millenium  Burkart&Medlik, Tourism; Past, Present and Future.  Gee, Chuck Y, James C. Makens , Dexter J. L. & Choy, The Travel Industry  Murphy, Peter H, Tourism: A Community Approach Textbooks  Bhatia A.K., Basics of Tourism Management, Sterling Publishers Pvt Delhi, 2010  Bhatia A.K., The Business of Tourism: Concepts and Strategies, Sterling Publishers Pvt Delhi, 2010  Inskeep Edward, Tourism Planning: An Integrated and Sustainable Development, John Wiley & Sons Inc Publications, New York.  Kumar Misra Suddhendu Narayan and Sadual Sapan, Basics of Tourism Management, Excel Books.  Nath Dhar Prem, Development of Tourism and Travel Industry: An Indian Perspective, Kanishka Publications, New Delhi.  Prasad VV Vara, Travel & Tourism Management, Sundari VBT Publications.  Sinha R.K., Tourism Strategies, Planning and Development, Common Wealth Publishers 18 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 2:GOVERNMENT ROLE IN TOURISM POLICY FORMULATION STRUCTURE 2.0 Learning Objectives 2.1 Introduction 2.2 Levels of Tourism Planning 2.3 Types of Tourism Planning 2.4 Conclusion 2.5 Summary 2.6 Keywords 2.7 Learning Activity 2.8 Unit End Questions 2.9 References 2.0LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe the formulation of Tourism policy  Identify the different levels of Tourism Planning  State the different types of Tourism Planning  Learn the various regional planning in India. 2.1INTRODUCTION Planning and policy development critically assess the key arguments regarding the outcomes of tourism in less developed societies. One does not have to look at literature too see that the impacts of tourism have been immense in the world we live in. Tourism is one of the fastest growing industries, according to WTO (World Tourism Organization) revised estimates total international tourist arrivals worldwide come to almost 595 million in 1996. International tourism receipts for 1996 are estimated to be $425 billion (WTO, 1997). 19 CU IDOL SELF LEARNING MATERIAL (SLM)

An article in the Hutchinson Educational Encyclopedia (1999) has pointed out that tourism is world’s largest industry. It sustained 120 million jobs in 1995 accounting for 7% of the global workforce (Hutchinson, 1999). As the figures show Tourism has a major impact on the world economy. One has to realize that along with benefits tourism does also bring many detrimental effects on both the developing and developed countries. Planning involves methods and materials hand in hand with making decisions regarding the future. Planning helps in attaining the objectives, through rational thinking and using the resources in an efficient & effective way in order to maximize output, income and employment. It ensures balanced growth of tourism sector which is unidirectional, focused and to achieve the desired goals. In tourism, planning is very important and brings a lot of benefits. Though, in the developed countries, the importance of this sector was realized soon, but lately recognized in the developing countries. This sector was greatly recognized post second world war. In 1960’s UNO also recognized the importance of tourism and the need of planning in it. The UNO in 1963 organized the International conference on “International Travel and Tourism” held in Rome (Italy) and recognized the importance of planning in the tourism sector and ended up with subsequent suggestions:  The developing countries should give high importance to growth of tourism.  UN is ready to give full support in form of regional and sub-regional surveys to support this activity.  Nations should carry out surveys of their resources and of the potential visitors and carry out thorough studies on tourist traffic estimates and forecasts.  The development of tourism should have both short term &long-term objectives.  In order to achieve the short term &long-term objectives, the countries should establish nodal agencies to set up National Tourism Organizations (NTO). 2.2 LEVELS OF TOURISM PLANNING Tourism planning is implemented at different levels from the general level which may apply to an entire country or region down to the local level which may apply to detail planning for specific resort. What is important to emphasize is the tourism planning and development must be integrated among all levels to take into account different levels of concern and to avoid duplication of efforts and policies. Each level involves different considerations as follows: International level - Tourism planning at the international level involves more than one country and includes areas such as international transportation services, joint tourism 20 CU IDOL SELF LEARNING MATERIAL (SLM)

marketing, regional tourism polices and standards, cooperation between sectors of member countries, and other cooperative concerns. National level - Tourism planning at the national level is concerned with national tourism policy, structure planning, transportation networks within the country, major tourism attractions, national level facility and service standards, investment policy, tourism education and training, and marketing of tourism. Regional level – Tourism planning at the regional level generally is done by provinces, states, or prefectures involving regional policy and infrastructure planning, regional access and transportation network, and other related functions at the regional level. Local or community level- Tourism planning at the local level involves sub regions, cities, towns, villages, resorts, rural areas and some tourist attractions. This level of planning may focus on tourism area plans, land use planning for resorts, and planning for other tourism facilities and attractions. Site planning level - Site planning refers to planning for specific location of buildings and structures, recreational facilities, conservation and landscape areas and other facilities carried out for specific development sites such as tourismresorts and may also involve the design of buildings, structures, landscaping and engineering design based on the site plan. As stated above, the levels of planning are diverse and may involve individuals, companies, industry, and country as a whole, micro or macro aspect. Generally, two economic systems occur in the world and the countries may adopt any one of them depending on their framework. These two systems are planned economy or market economy. The former type of planning involves to compulsory planning and the latter type of planning may be indicative planning. The process of tourism plans for national / regional / local levels is based on sustainable, amalgamated and implementable way. The key steps in planning of tourism are study preparation; determination of objectives; survey of all elements; analysis and synthesis of the survey information; policy and plan formulation; financial planning; Human resource planning; implementation techniques; administrative structures; monitoring progress; time factor; Marketing and promotion etc. It has now been recognized that tourism should be managed and developed in a controlled, integrated and sustainable manner, based on sound planning. This can bring great dividends to the region, not limited to economic, but social, cultural and ecological aspects. And prevent uncontrolled developments. Tourism planning is done at all levels i.e. international, national, regional and specific areas or sites. But, the regional planning scale is most 21 CU IDOL SELF LEARNING MATERIAL (SLM)

important and generally adopted throughout the world. It is defined as a destination zone usually controlled by the government agency and centers on regional planning of attractions, facilities and services for the tourist. Though proficient and skilled experts play an important role in making the master plan, finalizing key aspects, though the main plan is outside their jurisdiction. The long term planning approach in regional level is important for the success of the tourism plan. As, it helps in identifying the key problems associated with economy, society, culture and ecology of a region. Also, it brings more support from the local population. But in practical situations, tourism is a complex activity involving a lot of actors and organizations. So, for involving all the actors and organizations in a constructive way, planning of tourism is important. So, that the common agreed accepted agenda for all stakeholders can be moved ahead and the complicated & unresolved issues of conflict could be kept for any solution in the near future. Tourism for some regions may be a neo- activity. There the help can be taken from the experience of other established tourism regions, if the factors & environment of both the regions match. For countries that do not yet match tourism, planning can provide the necessary guidance for its development. For those places that already have some tourism, planning is often needed to revitalize this sector and maintain its future viability. So, whenever we are planning for tourism. Firstly, tourism be planned for national and regional levels. At these levels of planning the elite or standard tourism policies, structure, plans, facility standards and institutional factors and other factors be developed for developing and managing tourism. Then within that skeleton frame, national and regional planning more comprehensive plans be done to augment tourist attractions, resorts, urban, rural and other forms of tourism. There are various approaches involved in regional tourism planning and are as follows: Planning tourism as an integrated system: This approach is also known as planning function of demand & supply. It means that tourism should be seen as an interrelated or connected system of demand and supply. The demand factors are tourist markets (Domestic & International); local residents who use tourist infrastructure and Supply factors which consist of attractions, tourist activities, accommodation and other tourist facilities & services. The effective development, operation and management of regional tourism require certain institutional elements. These elements include organization structures, tourism related legislation and regulations, education and training programs, financial capital, marketing and promotion strategies and travel facilitation of immigration. 22 CU IDOL SELF LEARNING MATERIAL (SLM)

An inter-related system approach: or a comprehensive approach involves consideration & integrated development of all the parts of the tourism system which includes demand factors, supply factors, institutional factors for complete development of the system as an integrated unit Planning for sustainable development: This approach focuses on tourism planning that promotes efficient utilization and preservation of resources for future generations. This includes natural, cultural or other resources. The sustainable development approach considers the carrying of the place, conservation of resources & life supporting systems, maintaining quality of environment, conserving our culture & traditions and promoting tourism in a symbiotic way Long-range and strategic planning: This type of planning involves specific goals and objectives with long term period involved in it. The tourism polices developed are implemented to get desired results in a duration ranging from 10 to 20 years. This approach is generally employed in case of national parks or resorts, which require a long time for development. Public planning: in this approach generally government agencies or government are involved. Here the emphasis is on developing tourism for everyone which benefits everyone. Here, emphasis is on involving local people in the planning and development process. The role of government, private agencies and the local people is stream lined so as to realize the goals of tourism. This type of arrangement is generally followed in developing countries, where resources are scarce and the tourism activities are new. The tourism planning is important. But, there are numerous examples in the history which show that planning existed as a well-marked function in the traditional societies. Here below, Rice Terraces of the Philippine Cordilleras is a remarkable example of the planning of our ancestors. But, in the present context, it needs protection, preservation and planning to further facilitate its protection and preservation. 2.3 TYPES OF TOURISM PLANNING There are ‘n’ numbers of types of Tourism Planning. Some important ones are as follows:  Spatial Tourism Planning: The space as well as the environment is scrutinized for creating good quality infrastructure e.g. Jim Corbett National Park. 23 CU IDOL SELF LEARNING MATERIAL (SLM)

 Sectorial Tourism Planning: Region to be developed is divided in to various broad sections called sectors e.g. South East Asia  Integrated Tourism Planning: Parts of a tourist region are integrated so that the region becomes a hot destination.  Complex Tourism Planning: When several regions are considered for planning which are far away e.g. Char Dham Yatra.  Centralized Tourism Planning: Single authority, usually state or central Government, no private sector intervenes.  Decentralized Tourism Planning: Parties who are keen to develop the spot, Government do not interfere. But it provides financial support. e.g. Nedumbessary airport  Urban & Rural Tourism Planning:  Urban – modern infrastructure  Rural – culture, history, built from scratch. In Tourism, planning is of key importance. The key aim of this planning is to arrive at a balanced growth of demand and supply. It helps in best possible synchronization and co-ordination between the two extremities of the tourism market and preventing the making of serious economic, territorial or social imbalances. Therefore, the very starting point of planning in the tourism sector is to see it as a global activity and to bring benefits to the country and region as a whole. Though, there may be a number of planning types in tourism. The focus should be on integrated development through integrated planning. Integrated planning is a joint planning exercise that ensures the involvement of all the players of tourism i.e. the stakeholders and affected departments. The purpose is to scrutinize all economic, social and environmental costs and benefits, in order to determine the most appropriate option and to plan a suitable course of action. The planning of tourism, whether at the national or regional level, must be regarded as an integral and therefore, coordinated part of the country’s general economic and social planning. This co - ordinated approach has a direct bearing on the success of tourism industry, more so in developing countries. It is also to be remembered that tourism is not one business but involves many industries and a whole range of complex processes. A plan for tourism can only survive and serve its stated purposes, if there is co – ordination among all the processes. A first requisite is the need to ensure that the government organs specifically responsible for the tourist sector play their important role; which is that of co-operating with 24 CU IDOL SELF LEARNING MATERIAL (SLM)

all those governmental departments responsible for other branches concerned with the expansion of tourism. The tourism planning is vital as it helps to set a universal vision for the country or the region, course and assurance for tourism development. It helps in stream lining the various impacts of the development and resource limitations or in other words helps in conducting the feasibility study of the tourism market. Further it helps an area/ region/ nation by giving a stability and expectedness in the progress of the overall development of tourism in a given area. Tourism planning process is an important step at any level, regional or the national level. It may be regarded as an integral process and involves a coordinated approach. As we know that tourism is a complex activity and involves co-ordination of many sectors. So, a plan of tourism can only work, if there is co-ordination among all processes. Also, the basis of planning in the tourism sector must be seen in global perspective and connected with country’s economic and social development and with the overall policy of planning, for a region where tourism holds good potential and importance. The main aspects in tourism planning are assessment of tourist demand and supply; establishing objectives; territorial planning; basic infrastructure; financial planning; human resource planning; Administrative structure; marketing and promotion; monitoring progress and time factor. Also, according to WTO, there are two approaches to responsible planning for sustainable development- a top down approach where tourism plans are made by a central authority and bottom-up approach where plans are driven by the local community. Tourism development has both affirmative and pessimistic effects on a tourism destination. Communities are also vulnerable to useless and unplanned developments. And in order to overcome it, comprehensive planning is needed to maximize benefits and minimize the costs or disadvantages of tourism developments. And also that, for effective implementation of tourism plan; it is not important to only design a plan, but also to implement it errorless. Planners and governments along with tourism planning and development should understand the environment of the place and plan so as to improve it. The encouragement of the involvement and the active participation of the local community in the planning process are of primary importance for keeping the control of the tourism industry in the hands of the local population and achieving a balanced tourism development (Gunn, 1994). 25 CU IDOL SELF LEARNING MATERIAL (SLM)

2.4 CONCLUSION Tourism development and Tourism policy are closely interrelated aspects. Tourism development largely depends on tourism policy. Tourism is a very important segment of an economy. Economic development of any nation, whether developing, developed or underdeveloped country is significantly influenced by tourism sector. Therefore every country in the world has formulated number of tourism policies for the development of tourism sector. Indian Government also has undertaken number of initiatives to attract both domestic and foreign visitors. Expansion of tourism infrastructure, development of tourism spots, evolution of new tourism products Public Private Partnership are a few measures. In post independent period Government of India, Department of Tourism has introduced number of policies for the development of tourism sector in India. Tourism was recognized as an industry by the Planning commission of India and was included in the Concurrent List of Indian constitution to provide Constitutional recognition to the tourism sector and help in channelizing development of tourism in a systematic manner by enabling the Central Government to bring in legislation governing the activities of various service providers in the tourism sector. As a result tourism sector is increasing rapidly attracting a large number of visitors towards India and generating large employment and income earning opportunities. 2.5 SUMMARY  In tourism, planning is very important and brings a lot of benefits. Though, in the developed countries, the importance of this sector was realized soon, but lately recognized in the developing countries.  Planning involves methods and materials hand in hand with making decisions regarding the future. In 1960’s UNO also recognized the importance of tourism and the need of planning in it.  Tourism development and Tourism policy are closely interrelated aspects. Tourism development largely depends on tourism policy.  The tourism planning is vital as it helps to set a universal vision for the country or the region, course and assurance for tourism development. 26 CU IDOL SELF LEARNING MATERIAL (SLM)

2.6 KEYWORDS  International level Tourism planning - Tourism planning at the international level involves more than one country.  National level Tourism planning - Tourism planning at the national level is concerned with national tourism policy, structure planning, transportation networks within the country etc.  Regional level Tourism planning – Tourism planning at the regional level generally is done by provinces, states, or prefectures involving regional policy and infrastructure planning etc.  Local or community level Tourism planning - Tourism planning at the local level involves sub regions, cities, towns, villages, resorts, rural areas and some tourist attractions.  Site planning level - Site planning refers to planning for specific location of buildings and structures, recreational facilities, conservation and landscape areas etc  Complex Tourism Planning- When several regions are considered for planning which are far away e.g. Char Dham Yatra.  Centralized Tourism Planning- Single authority, usually state or central Government, no private sector intervenes 2.7 LEARNING ACTIVITY 1. What are the various types of tourism planning? ___________________________________________________________________________ ___________________________________________________________________________ 2. Explain the different levels of tourism planning ___________________________________________________________________________ ___________________________________________________________________________ 2.8 UNIT END QUESTIONS A. Descriptive Questions 27 CU IDOL SELF LEARNING MATERIAL (SLM)

Short Questions 1. What is Regional Level planning? 2. Explain the local or community level planning for tourism? 3. What is site planning level? 4. Explain planning tourism as an integrated system? 5. What is spatial tourism Planning? Long Questions 1. What are the different levels of tourism planning? 2. Explain the types of Tourism planning in detail? 3. What is Urban & Rural Tourism Planning? 4. What are the main aspects of tourism planning? 5. What are the two approaches to responsible planning for sustainable development? B. Multiple Choice Questions 1. NTO refers to a. Natural Trade Organization b. National Trade Organization c. National Travel Organization d. National Tourism Organisation 2. Tourism planning which involves more than one country is a. International level b. Regional Level c. Site planning level d. Community Level 3. Tourism planning at local level is called a. Site planning level b. Community level c. Regional level d. International level 4. Planning for specific location is 28 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Community Level b. regional level c. Site Planning Level d. international level 5. Planning tourism as an integrated system is also called as a. Planning function of demand & supply b. An inter-related system approach c. Planning for sustainable development d. Long-range and strategic planning Answers 1-d,2-a,3-b,4-c,5-a 2.9REFERENCES References book  Nath Dhar Prem, Development of Tourism and Travel Industry: An Indian Perspective, Kanishka Publications, New Delhi.  Problems encountered by tourists by Madhavi Chockalingam, A. Aurobindo Ganesh  Sinha R.K., Tourism Strategies, Planning and Development, Commonwealth Publishers.  Tourism Destination Planning by University of Hawai’i, Manoa.  Tourism Management 20 (1999) 183— 185 by Dimitrios Buhalis.  Tourism Planning by Ramakrishna Kongalla, Assistant Professor at Assistant Professor, IITTM, Gwalior.  Tourism Planning by Ramakrishna Kongalla, Assistant Professor at Assistant Professor, IITTM, Gwalior. 29 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT -3: INTERNATIONAL AGREEMENT I STRUCTURE 3.0 Learning Objectives 3.1 Introduction 3.2 Chicago Convention 3.3 Open Sky Policy 3.4 What is open sky policy and Who needs it 3.5 Summary 3.6 Keywords 3.7 Learning Activity 3.8 Unit End Questions 3.9 References 3.0LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe the international agreements  State what is freedom of air  Explain open sky policy  List the functions of HRM 3.1INTRODUCTION A treaty is a formal, legally binding written agreement between actors in international law. It is usually entered into by sovereign states and international organizations, but can sometimes include individuals, business entities, and other Legal persons. India has signed 48 bilateral / tripartite Agreements / MoUs / Protocols with other countries/international organizations to widen links of friendship and mutual promotion of tourism. During the year 2010, MoUs on tourism cooperation have been signed with Government of Malaysia on October 27, 2010 and with International Finance Cooperation (a 30 CU IDOL SELF LEARNING MATERIAL (SLM)

member of World Bank Group) the same day. In addition, Joint Working Group Meeting on Tourism with Syria was held on 11th May 2010 to strengthen tourism co-operation. The 2nd Joint Working Group Meeting between Government of India and Government of Indonesia on cooperation in the field of tourism was held at New Delhi on 20th December, 2010. An air transport agreement is a bilateral agreement to allow international commercial air transport services between signatories. The bilateral system has its basis under the Chicago Convention and associated multilateral treaties. 3.2 CHICAGO CONVENTION Traditionally, an airline needs the approval of the governments of the various countries involved before it can fly in or out of a country or even fly over another country without landing. Before World War II, this did not present too many difficulties since the range of commercial planes was limited, and air transport networks were limited and nationally oriented. In 1944, an International Convention was held in Chicago to establish the framework for all future bilateral and multilateral agreements to use international air spaces. Five freedom rights were designed, but a multilateral agreement went only as far as the first two freedoms (right to overfly and right to make a technical stop). The first five freedoms are regularly exchanged between pairs of countries in Air Service Agreements. The remaining freedoms are becoming more important, however. Freedoms are not automatically granted to an airline as a right; they are privileges that have to be negotiated and can be the object of political pressures. All freedoms beyond the First and the Second have to be negotiated by bilateral agreements, such as the 1946 agreement between the United States and the UK, which permitted limited “fifth freedom” rights. The 1944 Convention has been extended since then, and there are currently nine different freedoms: 31 CU IDOL SELF LEARNING MATERIAL (SLM)

First Freedom. The freedom to overfly a foreign country (A) From a home country En-route to another (B) Without landing. Also called transit freedom. With the end of the Cold War, the first freedom is widely available across the world, but countries such as Russia often limit the transit freedom to a few carriers. 32 CU IDOL SELF LEARNING MATERIAL (SLM)

Second Freedom. The freedom to stop in a foreign country for a technical/refueling purpose only. A flight from a home country can land in another country for purposes other than carrying passengers, such as refueling, maintenance, or emergencies. The final destination is a third country. For instance, in the earlier stages of transatlantic flights, a refueling stop was often required in Newfoundland (e.g. Gander) and Ireland. With the extension of the range of airplanes, this is becoming less relevant. Third Freedom. The freedom to carry traffic from a home country to another country for the purpose of commercial services. Fourth Freedom. The freedom to pick up traffic from another country to a home country for the purpose of commercial services. 33 CU IDOL SELF LEARNING MATERIAL (SLM)

The Third and Fourth Freedoms are the basis for direct commercial services, providing the rights to load and unload passengers, mail, and freight in another country. They are commonly reciprocal agreements implying that the two involved countries will open commercial services to their respective carriers simultaneously. Fifth Freedom. The freedom to carry traffic between two foreign countries on a flight that either originated in or is destined for the carrier’s home country. It enables airlines to carry passengers from a home country to another intermediate country and then fly on to third- country with the right to pick passengers in the intermediate country. Also referred to as “beyond right”. This freedom is divided into two categories: Intermediate Fifth Freedom Type is the right to carry from the third country to the second country. Beyond Fifth Freedom Type is the right to carries from a second country to a third country. Sixth Freedom. The “unofficial” freedom to carry traffic between two foreign countries via the carrier’s home country by combining third and fourth freedoms. Not formally part of the original 1944 convention, it refers to the right to carry passengers between two countries through an airport in the home country. With the hubbing function of most air transport networks; this freedom has become more common, notably in Europe (London, Amsterdam) and the Middle East (Dubai). 34 CU IDOL SELF LEARNING MATERIAL (SLM)

Seventh Freedom. The freedom to base aircraft in a foreign country for use on international services, establishing a de facto foreign hub. Covers the right to operate passenger services between two countries outside the home country. Eighth Freedom. The freedom to carry traffic between two domestic points in a foreign country on a flight that either originated in or is destined for the carrier’s home country. Also referred to as “cabotage” privileges. It involves the right to move passengers on a route from a home country to a destination country that uses more than one stop along which passengers may be loaded and unloaded. Ninth Freedom. The freedom to carry traffic between two domestic points in a foreign country. Also referred to as “full cabotage” or “open-skies” privileges. It involves the right of a home country to move passengers within another country. 35 CU IDOL SELF LEARNING MATERIAL (SLM)

A salient issue remains that air freedoms are independent of trade agreements. Therefore, a free trade agreement could exist between two nations, implying a liberalization of commercial transactions and the opportunity for respective corporations to invest. However, their respective air carriers could still operate under the same commercial restrictions as before the trade agreement. 3.3 OPEN SKY POLICY Open sky Policy refers to an agreement between two countries to allow any number of airlines to fly from either of them without any restriction on number of flights, number of destinations, and number of seats, price and so on. However, this is a general definition. In actual practice, there are always some restrictions. 36 CU IDOL SELF LEARNING MATERIAL (SLM)

3.4 WHAT IS AN OPEN SKIES POLICY AND WHO NEEDS IT? In civil aviation, an Open Skies policy means liberalization and ease of access and rules of use of national airports for foreign airlines. It is joined in order to increase the tourist flow and to develop the potential as a regional air hub. The degree of “sky openness” depends on the freedoms of the air in the country granted to foreign airlines. There are 9 such freedoms according to the 1944 Convention on International Civil Aviation. There’s also a Treaty on Open Skies signed March 24, 1992 at Helsinki by 23 OSCE member states. Currently, it has 34 world states, mainly the countries of the European Union, United States, Russia and Belarus. Kyrgyzstan has also joined the treaty, but the parliament has not ratified this document so far. The Treaty on Open Skies is by no means associated with the civil aviation and is designed to promote the “enhancement of confidence between the states through the improvement of the mechanisms of control over military activities and of compliance with applicable arms control treaties.” In other words, member states of the treaty have a right to flight over the entire territories of each other for military and political purposes. Who has “opened the skies”? 37 CU IDOL SELF LEARNING MATERIAL (SLM)

It’s hard to tell how many countries use the open skies policy today in civil aviation because sometimes countries use it unilaterally or by mutual consent of partner states. And sometimes they stop using it after a while. Some states apply this policy only to certain airports, not the whole country. For example, Russia pursues the open skies policy in the airports of Sochi, Kaliningrad and Vladivostok. Israel is successfully using this policy in its main Ben Gurion Airport in Tel Aviv. The European Union countries apply the open skies policy to airlines to provide equal opportunities to EU airlines in the common aviation market. The ASEAN member states also look into introduction of the similar regime among the member states of the regional organization. Who needs the “open skies”? Usually, but not necessarily, the “open skies” agreements are joined by the countries whose domestic airlines don’t have strong position in the airline market and have tight budget for development, meaning they cannot fully supply the existing or potential demand of consumers and foreign tourists. Another reason could be that domestic airlines cannot make flights to high-earning destinations. For example, to the European Union or North American countries due to the failure to comply with their strict safety requirements set forth by the aviation authorities of these countries. 38 CU IDOL SELF LEARNING MATERIAL (SLM)

If the country pursues the “open skies” policy, it should simplify as much as possible the rules of use of its air space and airports, as well as minimize the service costs related to the use of its airports. It’s important to note that the following comparative advantages play significant role in successful policy. They are aviation kerosene supplied at competitive prices or sufficient passenger or freight flow through domestic airports. In majority of cases, the country pursuing such a liberal policy benefits from it: the passenger flow through airports increases, the number of foreign tourists arriving to the country increases, and the freight flow increases, which sometimes contributes to the rise in domestic goods exports. The open skies policy mainly attracts budget airlines, which are also called low-cost airlines. There are many of them in the world and their number is constantly increasing. Such companies are known for their comparatively cheap air tickets and prices of their services. Given more competition between airlines, it usually leads to reduced prices of services and improved quality, which cannot but please ordinary passengers. On the other hand, domestic airlines are usually ill-disposed towards the open skies policy pursued by their governments because it leads to competitive expansion and makes inefficient local airlines reform themselves, adopt more flexible pricing policy and improve the quality of their services. 39 CU IDOL SELF LEARNING MATERIAL (SLM)

Sometimes local airlines can also lose a share of profits in the market of domestic air carriage, which can lead to loss of profits. However, if they manage to adapt to new conditions, these losses will be minimal. The successful experience of Israel demonstrates that such competition is ultimately for the benefit of both local airlines and the whole country. After the open skies policy was initiated, the passenger flow in Ben Gurion Airport increased from 13 to 20 million people in 2013 to 2017, and the airport was listed as the world’s leading airport. However, we need to be aware that Israel’s success is not guaranteed to all other countries. It depends on many factors, including good management of processes related to the open skies policy. What about Central Asia? Among other countries of Central Asia, Kyrgyzstan is the most progressive country in this regard. The government has already decided to introduce the open skies regime this year throughout the country for foreign airlines that make international flights. The government will provide the so-called “fifth freedom of the air” to foreign airlines. It means that a foreign airline making a flight from one destination to another with an intermediate stop in Kyrgyzstan can put down and take on passengers. Many low-cost airlines in the countries of Southeast Asia such as Malaysian Air Asia and others can consider Kyrgyzstan in their flights to the European countries and other cities in 40 CU IDOL SELF LEARNING MATERIAL (SLM)

the European part of Russia (Moscow, Saint Petersburg, and others). There’s a large passenger flow from Kyrgyzstan to the cities of Russia and Turkey, and these market segments can be interesting for many Asian airlines that don’t have direct flights to Russia, Turkey and other states of CIS. The open skies policy is also relevant to Uzbekistan, whose government considers this opportunity for a range of airports in the regions of the country. The authorities are determined to create conditions for foreign airlines in order to increase the tourist flow to the country. In the rest of Central Asian countries, the open skies concept is not relevant. Neutral Turkmenistan is not interested in it at all. In Tajikistan, the government strongly protects their local airlines – Somor Air and Tajik Air – from outside competition. Kazakhstan has its own strong flagship airline, Air Astana, and instead of opening the skies, the government helps to develop domestic airlines. The Treaty on Open Skies establishes a program of unarmed aerial surveillance flights over the entire territory of its participants. The treaty is designed to enhance mutual understanding and confidence by giving all participants, regardless of size, a direct role in gathering information about military forces and activities of concern to them. It entered into force on January 1, 2002, and currently has 34 party states. The idea of allowing countries to openly survey each other is thought to prevent misunderstandings (e.g., to assure a potential opponent that one's country is not about to go to war) and limit the escalation of tensions. It also provides mutual accountability for countries to follow through on treaty promises. Open Skies is one of the most wide-ranging international efforts to date promoting openness and transparency of military forces and activities. The concept of \"mutual aerial observation\" was initially proposed to Soviet Premier Nikolai Bulganin at the Geneva Conference of 1955 by U.S. President Dwight D. Eisenhower; however, the Soviets promptly rejected the concept and it lay dormant for several years. The treaty was eventually signed as an initiative of U.S. president (and former Central Intelligence Agency Director) George H. W. Bush in 1989. Negotiated by the then-members of NATO and the Warsaw Pact, the agreement was signed in Helsinki, Finland, on March 24, 1992. 41 CU IDOL SELF LEARNING MATERIAL (SLM)

The United States officially withdrew on 22 November 2020.Russia also announced intentions to exit the treaty on January 15, 2021 citing the U.S. withdrawal and the inability of the member nations to assure that no further details would be shared with U.S. now. 3.5SUMMARY  A treaty is a formal, legally binding written agreement between actors in international law.  India has signed 48 bilateral / tripartite Agreements / MoUs / Protocols with other countries/international organisations to widen links of friendship and mutual promotion of tourism.  In 1944, an International Convention was held in Chicago to establish the framework for all future bilateral and multilateral agreements to use international air spaces.  The Treaty on Open Skies is by no means associated with the civil aviation and is designed to promote the “enhancement of confidence between the states through the improvement of the mechanisms of control over military activities and of compliance with applicable arms control treaties.  The European Union countries apply the open skies policy to airlines to provide equal opportunities to EU airlines in the common aviation market.  The open skies policy mainly attracts budget airlines, which are also called low-cost airlines. There are many of them in the world and their number is constantly increasing.  The successful experience of Israel demonstrates that such competition is ultimately for the benefit of both local airlines and the whole country  The Treaty on Open Skies establishes a program of unarmed aerial surveillance flights over the entire territory of its participants. The treaty is designed to enhance mutual understanding and confidence by giving all participants, regardless of size, a direct role in gathering information about military forces and activities of concern to them. 42 CU IDOL SELF LEARNING MATERIAL (SLM)

3.6 KEYWORD  Treaty ― A treaty is a formal, legally binding written agreement between actors in international law. It is usually entered into by sovereign states and international organizations, but can sometimes include individuals, business entities, and other Legal persons.  Protocols- Protocol the term 'protocol' is used for agreements less formal than those entitled 'treaty' or 'convention'. A protocol signifies an instrument that creates legally binding obligations at international law. In most cases this term encompasses an instrument which is subsidiary to a treaty. Bilateral agreement.  Convention- A convention, in the sense of a meeting, is a gathering of individuals who meet at an arranged place and time in order to discuss or engage in some common interest. The most common conventions are based upon industry, profession, and fandom.  Transit freedom - Article V of the GATT (1994, Freedom of Transit) provides for freedom of transit of goods, vessels and other means of transport across the territory of WTO members via the routes most convenient for international transit.  Commercial airlines - An airliner is a type of aircraft for transporting passengers and air cargo. Such aircraft are most often operated by airlines. 43 CU IDOL SELF LEARNING MATERIAL (SLM)

 “cabotage privileges -In terms of cabotage, the eighth freedom of the air is the right to carry passengers from one point in the territory of a foreign country to another point in the same country as part of a flight which originated (or terminated) in the airline's home country (also known as consecutive cabotage)  Full Cabotage - Cabotage is the transport of goods or passengers between two places in the same country by a transport operator from another country. It originally applied to shipping along coastal routes, port to port, but now applies to aviation, railways, and road transport as well.  Open sky Policy - The Directorate General of Civil Aviation (DGCA) has recently made changes to the India's Open Sky Policy by limiting non-scheduled and ad hoc cargo flights by foreign carriers to six airports. The change in country's policy was made following a government review and it is primed to promote India's airfreight carriers.  ASEAN- officially the Association of Southeast Asian Nations is an economic union comprising 10 member states in Southeast Asia, which promotes intergovernmental cooperation and facilitates economic. 3.7 LEARNING ACTIVITY 1 What is open sky policy? ___________________________________________________________________________ ___________________________________________________________________________ 2. Discuss about the Open sky policy in Central Asia 44 CU IDOL SELF LEARNING MATERIAL (SLM)

___________________________________________________________________________ ___________________________________________________________________________ 3.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define International agreement? 2. What is air transport agreement? 3. What is Chicago convention? 4. What is independent of trade agreements? 5. What is open sky policy? Long Questions 1. Explain open sky policy and who need it? 2. What are the treaties of open sky? 3. Explain open sky policy in central Asia? 4. What is the freedom of air?Explain. 5. Explain the concept of \"mutual aerial observation\". B. Multiple Choice Questions 1. India has signed ___bilateral agreements to widen links of friendship and mutual promotion of tourism. a. 42 b. 40 c. 48 d. 45 2. A ______ agreement is a bilateral agreement to allow international commercial air transport services between signatories. a. Air transport b. Rail transport c. Cruise transport d. Surface transport 45 CU IDOL SELF LEARNING MATERIAL (SLM)

3. International convention was held in_____ a. Spain b. Germany c. Australia d. Chicago 4. International convention in Chicago was held in the year a. 1947 b. 1954 c. 1944 d. 1965 5. The freedom to over fly a foreign country is called as a. Transit freedom b. Travel freedom c. Flying freedom d. Open sky 6. Freedom to carry traffic for commercial service is a ___ a. First freedom b. Second freedom c. Third freedom d. Fourth freedom Answers 1-c,2-a,3-d,4-c,5-a,6-c 3.9REFERENCES References book  World Travel and Tourism Council: Travel and Tourism Economic Impact, WTTC Publications, London 1999 46 CU IDOL SELF LEARNING MATERIAL (SLM)

 Tourism concepts and practices- John R.Walker &Josielyn T. Walker; Pearson Publication, 2011.  Tourism Principles, Practices, Philosophies- Charles R. Goeldner and J.R. Brent Ritchie, Wiley Publication, 2007.  International Tourism Management- A.K.Bhatia; Sterling Publication, 2001.  The Business of Tourism: Concepts and strategies- A.K.Bhatia; Sterling Publication, 2011  http://www.uow.edu.au/index.html (University of Wollongong, University).  World Tourism Organization: Tourism Development and the Responsibility of the State, WTO Publications, Madrid 1993. 47 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 4: AGREEMENT II STRUCTURE 2.0 Learning Objectives 2.1 Introduction 2.2 Euro Agreement 2.3 Schengen Agreement 2.3.1 History of Schengen agreement 2.3.2 Schengen area members 2.3.3 Schengen countries 2.4 Summary 2.5 Keywords 2.6 Learning Activity 2.7 Unit End Questions 2.8 References 4.0LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe nature of agreements between countries  Understand Bermuda Agreement  State the need of air transport agreements  List the tourism policies and planning 4.1INTRODUCTION The Bermuda Agreement arose in the wake of the Chicago Conference of 1944, where the United States and United Kingdom disagreed about economic control of international air transport. The US and UK had generally agreed on the first two freedoms of the air (over flight and landings for repair/refueling) but the UK and several other countries refused to accept the US position on the third, fourth and fifth freedoms regarding the handling of passenger and cargo traffic.Specifically, the US sought the freedom for its carriers to 48 CU IDOL SELF LEARNING MATERIAL (SLM)

determine capacity and frequencies on international routes, while the UK sought predetermined routes and an equal division of capacity between the two nations' carriers on those routes.Britain had lost much of its air fleet in the course of World War II and was reluctant to place itself in full competition with the stronger American air fleet. The Bermuda Agreement (formally Agreement between the government of the United Kingdom and the government of the United States relating to Air Services between their respective Territories), reached in 1946 by American and British negotiators in Bermuda, was an early bilateral air transport agreement regulating civil air transport. It established a precedent for the signing of approximately 3,000 other such agreements between countries. The Agreement was replaced by the Bermuda II Agreement, which was signed in 1977 and effective in 1978. Prior to the Bermuda Agreement, the United States signed bilateral aviation agreements with several other European countries (Ireland, Norway, Sweden and Denmark), and had signed a multilateral Transport Agreement with several European and Latin American countries, but service to and from the United Kingdom had to be negotiated with the British government on an ad hoc basis. As of late 1945, the UK had limited transatlantic traffic by the US to 14 services per week, 500 seats per week and a minimum fare of $375. In July 1945, the US government granted Pan Am, Trans World Airlines (TWA) and American Export Airlines (shortly thereafter acquired by American Airlines and renamed American Overseas Airlines) the right to operate transatlantic service. American began its Douglas DC-4 service between New York and Bournemouth that October.Pan Am announced its own DC-4 service in October 1945 at prices less than 50% of the previous flying boat fares, which led the British government to pressure both Pan Am and the US government to back away from what Britain described as a \"wholly uneconomic proposition.\" The US and UK governments agreed in late 1945 to meet and discuss the terms of a bilateral aviation agreement. Bermuda was chosen to host the meeting due to its location between the two countries and isolation from their respective governments. In a sign of the rapidly advancing technology of the time, the British delegation arrived in January by Boeing 314 flying boats, and departed in February by Lockheed 049 Constellation pressurized landplanes. 49 CU IDOL SELF LEARNING MATERIAL (SLM)

Unlike the existing bilateral and multilateral aviation agreements, the Bermuda Agreement defined specific routes on which each country’s carriers could fly, with the right to pick up or discharge international traffic (but no cabotage rights) at any point along the routes:  British carriers:  London – New York – San Francisco – Honolulu / Midway / Wake / Guam / Manila – Singapore / Hong Kong  London – New York – New Orleans – Mexico  London – New York – Cuba – Jamaica / Panama – Colombia / Ecuador / Peru / Chile  United States carriers:  US points – London – Netherlands / Germany / Scandinavia / Russia  US points – London – Belgium – Central Europe – Near East – India  Honolulu – Hong Kong – China / India  Honolulu – Hong Kong – Singapore – Netherlands East Indies The inclusion of many fifth freedom routes (beyond the United States and British Isles) reflected the fact that many territories such as Hong Kong, Singapore and India were still British colonies at the time the agreement was signed, and that many third countries were eager for air service and willing to provide rights to British and American carriers without restrictions. As a compromise on the capacity issue, the Bermuda Agreement provided for equitable principles that \"there shall be a fair and equal opportunity for the carriers of the two nations to operate on any route between their respective territories (as defined in the Agreement) covered by the Agreement and its Annex\" and that \"in the operation by the air carriers of either Government of the trunk services described in the Annex to the Agreement, the interest of the air carriers of the other Government shall be taken into consideration so as not to affect unduly the services which the latter provides.\" Fares were made subject to regulatory approval by authorities in each country or by the International Air Transport Association, effectively giving the IATA immunity from US antitrust law, which immunity remained in effect on North Atlantic routes until 1979. 50 CU IDOL SELF LEARNING MATERIAL (SLM)