Introductory Tourism and Hospitality for TSLC

Council for Technical Education and Vocational TrainingPokhara School of Tourism and Hospitality Management (To Be a Professional, Learn Technical and Vocational) TSLC in Culinary Arts www.psthm.edu.np

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Table of ContentsUnit 1: Introduction ...................................................................................................................................... 1 1.1 Concept, Meaning and Definition of Tourism..................................................................................... 1 1.2 Nature, Scope and Importance of Tourism......................................................................................... 1 1.3 Definition of Travelers, Tourist and Excursionist ................................................................................ 4 1.4 Types of Tourism and Tourist.............................................................................................................. 4 1.5 Characteristic of Tourism .................................................................................................................... 6 1.6 Benefits of Tourism............................................................................................................................. 6Unit 2 Travel Behavior................................................................................................................................... 7 2.1 Define travel motivator....................................................................................................................... 7 2.2 Reason behind travelling .................................................................................................................... 7 2.3 The characteristic of travel ................................................................................................................. 9 2.4 Barrier factor in travelling................................................................................................................... 9 2.5 The stages of tourist journey ............................................................................................................ 10Unit 3 the Evolution process of tourism ..................................................................................................... 12 3.1 Evolution of tourism: The global perspective ................................................................................... 12 3.2 Evolution of Tourism in Nepal........................................................................................................... 13UNIT 4: Components of Tourism................................................................................................................. 18 4.0 Component of Tourism ..................................................................................................................... 18 4.1 Five A’s components of tourism ....................................................................................................... 18 4.1.1 Attraction ................................................................................................................................... 19 4.1.2 Accommodation......................................................................................................................... 19 4.1.3 Accessibility................................................................................................................................ 19 4.1.4 Amenities/comforts/facilities .................................................................................................... 20 4.1.5 Activities..................................................................................................................................... 20Unit 5: Tourism product and Impact of tourism ......................................................................................... 21 5.1 Tourism product................................................................................................................................ 21 5.1.1 Define Tourism Product ............................................................................................................. 21 5.1.2 Nature and Characteristic of Tourism product .......................................................................... 21 5.1.3 Types of Tourism Product .......................................................................................................... 22 5.1.4 Tourism product of Nepal .......................................................................................................... 23Unit 6: Tourism related organizations: Its role and functions. ................................................................... 25 6.1 National Tourism Related Organizations, their nature and primary role ......................................... 25 ii

6.1.1 Ministry of Tourism and Civil Aviation (MOTCA) ....................................................................... 25 6.1.2 Nepal Tourism Boards (NTB)...................................................................................................... 26 6.1.3 Hotel Association of Nepal (HAN) .............................................................................................. 27 6.1.4 Nepal Association of Travel Agent (NATA)................................................................................. 28 6.1.5 Trekking Agent Association of Nepal (TAAN)............................................................................. 29 6.1.6 Nepal Association of Rafting Agent (NARA)............................................................................... 31 6.2 International Tourism Related Organization .................................................................................... 32 6.2.1 United Nation World Tourism Organization (UNWTO) ............................................................. 32 6.2.2 Pacific Asia Travel Association (PATA) ....................................................................................... 35 6.2.3 International Air Transport Association(IATA)........................................................................... 37 6.2.4 International Civil Aviation Organization (ICAO)........................................................................ 40Part B........................................................................................................................................................... 45Hospitality Industry..................................................................................................................................... 45Unit 1: Hospitality Industry ......................................................................................................................... 46 1.1 Introduction of Hospitality Industry ................................................................................................. 46 1.2 Nature/Characteristic of Hospitality Industry................................................................................... 46 1.3 Sectors of Hospitality Industry.......................................................................................................... 47 1.4 Relationship between Tourism and Hospitality Industry.................................................................. 49 1.5 Origin and development of hospitality industry ............................................................................... 51 1.6 Changing trends of hospitality industry............................................................................................ 51Unit 2: Catering Sector................................................................................................................................ 54 2.1 Meaning and Definition catering establishment .............................................................................. 54 2.2 Role of catering establishment in hospitality industry ..................................................................... 54 2.3 Classification of catering Establishment ........................................................................................... 56 2.4 Evolution of catering establishment ................................................................................................. 58Unit 3: Hotel Industry.................................................................................................................................. 60 3.1 Introduction of Hotel Industry .......................................................................................................... 60 3.2 Evolution of hotel in Nepal ............................................................................................................... 60 3.3 Classification of Hotel ....................................................................................................................... 61 3.3.1 On the basis of location ............................................................................................................. 61 3.3.2 On the basis size of property ..................................................................................................... 62 3.3.3 On the basis of management..................................................................................................... 62 3.3.4 On the basis of service standard (star rating) ............................................................................ 63 iii

3.4 Organization Chart of Hotel .............................................................................................................. 64 5 Major functional and operational department of hotel with function ............................................... 65 3.6 Front of the house department and Back of the house department in hotel.................................. 66 3.7 Inter departmental relationship ....................................................................................................... 67Unit 4: Career prospects in Hospitality Industry......................................................................................... 68 4.1 Define career..................................................................................................................................... 68 4.2 Career possibilities in Hospitality Industry ....................................................................................... 68 4.3 Career path in hospitality Industry ................................................................................................... 71 4.4 Importance of Internship .................................................................................................................. 73 4.5 Attributes of Hospitality staff............................................................................................................ 74Unit 5: Law related to tourism and hospitality industries .......................................................................... 76 5.1 Tourism Act 2035 .............................................................................................................................. 76 5.2 Hotel, Lodge, Restaurant, Bar and Tourist guide regulation 2038 ................................................... 76 15. License may be cancelled.................................................................................................................. 77 5.3 Describe about legal provision of registration hotels....................................................................... 77 5.4 Explain Minimum facilities provided by hotels................................................................................. 78 5.5 State about trade union.................................................................................................................... 78 iv

Unit 1: Introduction1.1 Concept, Meaning and Definition of TourismConcept and Meaning of TourismOriginally, the word \"Tourism\" has been derived from French word \"Tourisme\", which meanstravel and travel related job. The word \"Tourism\" is a well-liked international leisure activity.Tourism may be inside the same country, as well as from one country to other countries tourismplays a vital role on a nation's income and expenditure. Nowadays, tourism could be a major supplyof financial gain for several part of the world and affects the economic status of each the supplyand supplier parts of the world, as we see clearly tourism is one of the significant role of developingan underdeveloped country.Similarly, In Sanskrit Literature there is three terms for Tourism derived from the root word“Atana” which means going out and accordingly we have the terms:  Tirthatana – It means going out and visiting places of religious merit.  Paryatana - It means going out for pleasure and knowledge.  Deshatana - It means going out of the country primarily for economic gains.General meaning of tourism is the movement of people from one place to another, whether it maybe within own country out of their usual places or other countries for various purpose.Definition of TourismIn 1993 A.D. the world tourism organization (WTO) suggested official and technical definition tounited nation (UN) for the statistical purpose as: -\"Tourism is an activity of a person traveling to and staying in places outside their usualenvironment for not more than one consecutive year for leisure, business, or any otherpurpose.\"1.2 Nature, Scope and Importance of Tourism A. Nature of TourismThe nature of tourism is closely connected with travelling. It has been a human phenomenon sincethe beginning of human civilization. It is a sensitive factor of the human nature in the context ofmoving to survive, explore and to know the unknown. In the early times, they started travelling asnomads in search of prey and food. Later the development of the agricultural system created a baseof the movement of people as a traveler. Then the output of industrial revolution made travellingprominent to various destination. It made the traveler lifestyle easier and safer to realize theirtourism activities. 1

Thus, the modern tourism is absolutely changed due to complete development of over all sectorsof tourism components and consciousness of the people. The nature of tourism is described in thefollowing heading:-  Tourism and service:-Tourism is a service industry, which is composed of those sector of economy that are involved in providing service, such as accommodation, food and beverage, transportation and recreation as well as distribution and sales services. Tourism Industry has been taken as the term that denotes work, productivity, employment income, economic growth, social development etc. but it does not produce any commodity which cannot be touched or taken home. Hence tourism is a hospitality industry and bridge between people. It makes a valuable contribution to the words economy by employing more people than any other industry.  Tourism is a contributor to the economy: -Through Tourism, a great deal of income is generated in economy in the form of domestic or international exchange. a large chunk of workforce gets employed in this industry. It is also a major contributor to the public revenue. The nature too can be conserved owing to tourism. The natural resources of the economy can be tapped and the friendly relation with other countries can result in the benefit of the economy.  Tourism compromise of various industrial businesses: - Tourism can be defined as the activities of the tourists and those who cater for them. Therefore, it is evident from the above definition that tourist alone are insufficient for the tourism industries. The existence of the other components is equally crucial for the proper functioning of the industry. Hence the co-existing of diverse business organizations makes this industry possible. Therefore, it is also regarded as smokeless industry/sectional industry/decentralized industry/or legitimate industry.  Tourism products are highly perishable: - the intangible product in tourism i.e., service is very short lived. It is not possible to store like tangible products. Hence, if the service is not rendered within a definite time frame, then the return trends to be zero, or even negative. Such lost revenue can never be recovered.  Tourism is related with luxuriousness: - tourism is an activity undertaken by the people during leisure for pleasure. Hence, tourism activities are almost non-existent among the low income group with a low purchase capacity. It is a luxurious concept primarily associated with the affluent and high class people having higher purchasing power. Therefore, we normally find the people from the rich countries mostly undertaking the tourism activities.  Tourism products are stationary: - in tourism industry the attraction inspire the aspirations of the tourists. The attractions, such as the mountains, lakes, historical monuments, museum, them and fun parks, George, valleys, waterfalls, climate and seasons, flora and fauna etc. are something which cannot be copied or imitated by any other countries. At the same time they are immobile. a prospective tourist need to approach these beauties and not vice a versa. 2

 Tourism is an incessant industry: - there is no any horizon or end to the tourism activities. Creative minds can always come up with new ideas and creativity. In tourism industry there is non-stop movement of people and incessant move give rise to more tourism activities. Tourism is an inspiration to the motivation of life style: - Tourism inspires the people to exchange the life style, technically and scientifically, as it insists their desires to experience a change and willingness to spend money and time. Tourism inspires the traveler to get the new ideas both positive and negative and aspires to adopt in one's own life. Tourism helps in educating the mass: - There exists a spontaneous process of learning and exchange of ideas in the industry, the scope of explorations and discovery is very high among adventure tourist. Due to tourism there exists a respect for each other's religious belief, cultural values, traditions, rights and rituals.B. Scope of Tourism:-C. Importance of TourismTourism is an industry which has been growing at the fastest rate to be one of the single biggestindustries in the world. Tourism has gained a place among the top three constituents of theworld trade alongside the oil and automobile industry. The importance of tourism is mentionedas under:- Source of foreign exchange earning Employment generation 3

 Publicity of nation  Creation of domestic industry  Development of rural economy  Infrastructure development  Development of protected area Conservation of the natural resource  Explore and Exchange of culture and religion  Develop friendship and understanding  Build peace among the nation  Provide education1.3 Definition of Travelers, Tourist and ExcursionistTourist: - in 1800 A.D. an oxford dictionary defines tourist as \"tourist is a person who travelspleasure of traveling out of the curiosity and because he has nothing better to do.\"According to WTO \"tourist is a temporary visitor staying at least 24 hour in a country visited whenthe purpose of the journey can be classified under one of the following heading:- i) leisure(recreation, holiday, health, study, religion, and sport). ii) Business, family, mission.Excursionist:- \"A temporary visitor stays less than 24 hour in their countries visited although theymay visit the country during one day or more and return to their ship or train to sleep.\"In 1991A.D. WTO defines excursionist as: - the term international excursionist (same day visitor)refers to an international visitor who does not spend the right in a collective or privateaccommodation in the country visited.\"1.4 Types of Tourism and Tourist A. Types of TourismTourism is the movement of the tourists from one place to another place. It is the temporary short-term movement of people to destinations outside the place where they normally live &workincludes the activities they indulge in at the destination as well as all facilities and servicesspecially created to meet their needs. Tourism does not only mean traveling to a particulardestination but also includes all activities undertaken during the stay. It includes day visits &excursions. The movement can be in your country or the tourists can also travel to the foreigndestinations for the tourism purpose.On this basis tourism can be divided into  Domestic Tourism  International TourismDomestic TourismThe person who travels within the borders of his own country for leisure, Pleasure, recreation,business purpose is called domestic tourism. it is also called national or internal tourismInternational Tourism 4

International tourism involves the movement of people among different countries in the world. Aperson who goes outside of his/her own country for leisure, pleasure, recreation, business etc iscalled international tourism. International movement of people requires different types of legaland financial formalities to be met before departing from their country.In International Tourism you will come across two other terms:i) Inbound: This refers to tourists entering a country.ii) Outbound: This refers to tourists leaving their country of origin for another.Types of Tourist:There are no hard and fast race for the division of tourists. Different scholars have divided touristunder different headings. Similarly tourist are divided by airlines, hotels, travel agents etc.according to intention of their visit. Researchers had categorized tourist according to age group,types of tour, size of group, economic and purpose of visit and duration of stay. According toUNWTO (united nation world tourism organization) tourist are categorized into following:Types of Tourist Activities done by touristRecreational Tourist Club and casino, spa, fun world, sports center etc.Holiday Tourist Cultural tour, shopping, theme parks etc.Leisure Tourist Place of historical importance, museums, art clubs etc.Student Tourist Studies and researchReligious Tourist Pilgrimage, religious charity activities etc.Special interest group Business, meeting, conference, convention, shopping etcAdventure Tourist Jungle safari, mountaineering, rafting, trekking, kayaking, bungee jumping, exploring etc. 5

1.5 Characteristic of TourismOn the basis of definition given by various scholars the characteristic of tourism is as follow:-  Tourism arises from the movement of the people and their stay in various destinations.  There are two elements involved in all kinds of tourism a) The journey to a destination b) The stay and activities at these destination.  The journey and stay takes place outside their usual place of work and resident.  The movement to these destinations is temporary with the intention of returning within few days, weeks and months.  The destinations are visited for purpose other than taking off permanent resident or employment remunerated from the basic visited.1.6 Benefits of TourismThe key benefits of tourism are economic, socio-cultural and environmental.Economic benefits - Tourism can provide direct jobs to the community, such as tour guides orhotel housekeeping. Indirect employment is generated through other industries such asagriculture, food production, and retail.Visitors' expenditure generates income for the local community and can lead to the alleviation ofpoverty in countries which are heavily reliant on tourism.Economic diversification is important to areas where there may be a concentration ofenvironmentally damaging industries such as mining or manufacturing.Infrastructure development such as airports, roads, schools, hospitals, and retail areas have thepotential to benefit the local community and can aid economic development by allowing moretrade and better flow of goods and services.Social benefits - Tourism can bring about a real sense of pride and identity to communities. Byshowcasing distinct characteristics of their ways of life, history and culture, tourism canencourage the preservation of traditions which may be at risk ofEnvironmental benefits - Tourism provides financial support for the conservation ofecosystems and natural resource management, making the destination more authentic anddesirable to visitors. It also adds more value to the local tourism business. 6

Unit 2 Travel Behavior2.1 Define travel motivator Without people’s motivation to travel, there would be no tourist industry. The prospectivetraveler’s selection of a destination is sometimes likened to a trip to a travel supermarket, wherethe shopper walks in and selects the destination from any one of the thousands of choices. Althoughthere are hundreds or thousands of possible destinations, the perspective of the traveler is usuallycircumscribed by a number of factors. These include time, attitude, family responsibilities, finance,education, physical health and well-being.Travel motivators can be defined as those factors that create a person’s desire to travel. Motivatorsare the internal psychological influence affecting individual’s choices. Motivations operate onindividuals travel purchases choices within the framework already set by the determinants ofdemand. Several attempts have been made to study as to why people wish to travel or becometourists.According to (Dann 1981) Foundations for Understanding Tourism MotivationsMotivation for travel covers a broad range of human behavior and experiences. Breaking downand elaborating these will give reasons as to why more and more people engage in tourism. Thebreakdown of wide categories would result in the following factors:2.2 Reason behind travellingRobinson's classification of travel motivator factor:Taking over the thread from McIntosh, Robinson (1970) worked out the above said four categoriesof travel motivations and further classified them into seven groups. According to Robinson, themain purposes of people undertaking travel or tourism are as follows:1. Relaxation and Refreshment of Body and Mind: This category of tourism motivations is theaftermath of increasing industrialization, growing urbanization, pressures, pushes and pulls of 7

modern life. To overcome these, one necessitates rest and relaxation, undergoing enlivenment ofmind and body every so often.The nature and the design in which relaxation, recreation or pleasure is sought vary with theindividual. Relaxation and refreshment to some degree, whatever the form of holiday, are thepredominant motivations of the holiday maker looking for escape from the pressures of everydaylife.Tourism, thus, becomes instrumental in breathing new life or rejuvenating an individual’s moral,ethical health and re-establishing the passionate poise.2. Health: Health is one of the critical objects for most of the people to practice travel or tourism(Health Tourism). Since primeval times, people have been visiting spas and other watering placesto take and bathe in medicinal waters or undergo specialized medical treatments.Several spas and climes the world over are sought- after for their curative aspects and entice manyvisitors. This has, indeed, contributed a lot in the development of ‘Health Resorts’ in many partsof the world.Lively involvement in a range of sporting activities as a means of recreation has evolved into oneof the key motivations of modern tourism. Sports involving physical activities such as skiing,sailing, underwater swimming, surfing, mountaineering and trekking, etc. which offset and providerelief from the inertia and tedium of the daily working life, are for large number of people theraison d’etre of holiday.3. Pleasure: Robinson reiterates Mcintosh’s interpretation that the motivation for satisfying anindividual’s need for pleasure, good time and enthusiasm is “perhaps, the most predominant of allindividual travel motivations” (Pleasure Tourism).A person’s need for pleasure of the kind mentioned is very deep-rooted and “travel has the uniquequality of being able to satisfy this desire. While pleasure and romance (associated with theholiday) are primary attributes of the holiday travel experience, they are also very strongmotivators”.4. Curiosity and Culture: People are motivated by curiosity about other people, countries andtheir culture i.e., an urge to seek new experiences (Cultural Tourism). “The increased interestshown by many in art, architecture, music, literature, dance, folklore, sports and pastimes of otherpeople’s culture or in archaeological or historical remains and monuments is but another aspect ofcuriosity, which has been stimulated by more education”.For this class of people, international sports or mega events, special festivals and celebrations makeup an outstanding pull.5. Interpersonal Reasons: The category of interpersonal motivations is linked to people’s desireto visit their relatives, friends, families and ancestral homelands (Ethnic Tourism) or to meet newpeople and seek new alliances and intimacies. The motivation also finds manifestation in theindividual’s desire associated with an escape from his normal environment and surroundings. 8

6. Spiritual Purposes: Large sections of people in different parts of the world are also motivatedto travel as a result of spiritual motives that is, visiting shrines, holy places and making pilgrimagesto the sacred religious sites (Pilgrimage Tourism and Spiritual Tourism). The motivation isindicative of a way to discover oneself and may1 represent an irresistible act of faith, or an interestin the holy places.7. Professional or Business Reasons: Professional and business concerns also prove to be a strongmotivation for many to travel (Business Tourism), often combining both the business activitiesand pleasure. On the whole, the basic motive for such a travel is personal development,enhancement of standing and status, and setting up and strengthening of contacts.Conventions, conferences and professional/business meetings allure people from their respectivelines of work and walks of life at one forum to interact and/or transact with each other.2.3 The characteristic of travelAny person who travels have their own style which has different character but how we candistinguish in simple terms are as follow;GIT (Group Inclusive Tour)Some of the travelers desire more safety and friendly environment may travel in group which intourism term called as Group Inclusive Tour. This category of tours consists more number ofpeople who share same kind of facilities and starts their journey for similar environment so eachand every member of the group are known to each other. Normally GIT is pre-arranged and canbe considered as package.FIT (Free Individual Traveler)There are some people who loves to travel alone so they don’t have to share facilities and don’thave to compromise with the own desire and plan of travel. The joy can be achieved to the higherlevel as a single person can have the full control over the travel decisions. FIT s can have packageschedule but normally this is the category of traveler who enjoys the sole travel to the places ofvisit.2.4 Barrier factor in travellingA travel barrier is a factor that prevents or hinders people from travelling, some important travelbarriers include: –  Cost factor/Economic  Time factor  Health factor  Family reason  Political reason  Weather  Fear  Lack of awareness and interest 9

2.5 The stages of tourist journeyMost of the people think that the tourist journey as packing, going to their destination, withoutrealizing that travelers first go through a multi-step cycle. Whether a traveler is dreaming abouttheir next vacation or actually experiencing it, to cater the needs of visitors in each stage of thetraveler’s journey. The stages of tourist journey is as follow which have to fulfillment by everytravelers. 1. Dreaming Stages of Tourist Journey 10

Stage 1: DreamingEvery holiday starts with a dream. As the saying goes, everything starts with a dream. Once theidea of a vacation got in your head, you started talking with your significant other, friends or familyabout your idea. This is the start of the dreaming phase of the tourist journey.The dreaming phase are looking for inspiration. Content should create an emotional connection,Imagery should create an instant connection, drum up the desire to visit and leave a lastingimpression on the people. They can also inspired by their friends’ holidays, which they follow stepby step on social media and travel blogs are also consulted for travel inspiration.It’s important to be in front of potential visitors when they are dreaming of a holiday which in turnwill encourage them to start planning.Stage 2: Planning PhaseAfter the Inspiration and Dreaming phase anyone who wishes to travel should plan for their keydetermining factors. If those factors can be solved then only a person can think of travelling. Thosedetermining factors can be for the very first, ‘time’ and ‘Money’, Where to go, where to stay, whatto do there. They also looking for more ideas, choices, options, suggestions, recommendations andassurances. Without know the available resources nobody can think have any kind of tour thatconsist of pleasure, or cannot come under the category of tourist as defined by the UNWTO.Stage 3: Starting the journeyAs soon a person determines to travel the journey starts by leaving home with the proper plan toreturn in that place in certain period of time. So the person starts journey packing the basicnecessary during the tour. In this stage any person starts the journey will have excitement andexpectation towards the place of travel.Stage 4: Enjoying the tourThe saturation point where a person starts enjoying the trip, he/she will start comparing theexpectation, Dream, plan before the trip and with reality during the tour.Stage 5: Returning homeAfter enjoying the trip person returns home with experience. Experience that person have gained,may contradict with previous experience or may return with higher joy and also share their wholetour experiences and photos with others travelers, friends and family. 11

Unit 3 the Evolution process of tourism3.1 Evolution of tourism: The global perspectiveFirst Phase • Early days up to 1840 ADSecond Phase • 1841 up to 1945 ADThird Phase • 1945 AD to Modern Days1. First Phase (Period before 1840) This phase is the period before the industrial revolution, during which period; people basically traveled from one place to other for the sake of trade, commerce and pilgrimage purpose. Life was not divided into work and leisure for the general people. Travelers were mostly wealthy people who used to be equipped with all the lodging and fooding facilities because journey could not be conducted in the single day. Rest houses had been built for the travelers and for the pilgrimage. The concept of modern hotels was started in London in 1744. Steam ship development in around 1770, steam ship lying on schedule in around 1820. Development of railways during late 1830.2. Second Phase-The time period between First &Second World War (1841 to 1945) Success of railways in England encouraged many neighboring countries in Europe including France, Austria, and Switzerland and in America. The birth of organized rail travel and concept of tourism came into existence in the year 1841. The Concept of comfort was developed by the revolution of rail transport. In 1870, an American G.M. Pull Man develop first class railways transport. In India the first train services started in 1853 which is world's second largest system under one management. The evolution of railway affected the quantity of accommodation. The shipping technology has also made a significant contribution to the development of travel and trade. The improvement in transport and communication system during the second half of 19th century enabled large number of workers to travel, rest, relaxation and pleasure. 12

 Capacity and desire of new classes to travel was satisfied by development of comfortable coaches, hotels and resorts. 3. Third Phase (Period after Second World War)  First Commercial Jet flight was introduced between London and New York in 1952.  International Air Traffic Association change into international air transport association in 1945.  International civil aviation organization created in 1947.  Universal federation of Travel Agent Association was established in 1966.  PATA was established in 1951.  Introduction of jet in the year 1958.  Introduction of Inclusive Tour.  Introduction of IT.3.2 Evolution of Tourism in Nepal a. Tourism in Ancient Nepal  Ancient history is mainly based on cultural purpose.  Manjushree (Tibet) is regarded as first to come Nepal who cut Chobar hill and let all water go outside making Kathmandu valley liveable.  Ashoka (India) visited Lumbini, and erected Ashoka pillar in (Evidence that Buddha was born in Nepal)  Famous Chinese traveler, Huien Tsang, visited Lumbini in 643AD.  Regular visits by Buddhism followere sush as Santarakshit (742 AD), Padma Sambhav (474 AD), Kamalsheel (760 AD), Atisha Dipankar (1000 AD), Milarepa (1010 AD)Lichchhavi Dynasty (400-750AD)  Marriage relationship between daughter of Amshuverma, Bhrikuti and Tibet king Srong Sten Gampo.  Established Bilateral linkage established between Tibet and Nepal.  Araniko visited Tibet and flourished Nepali art there.Malla Dynasty (750-1480AD)  In reign of Malla king, westerners began coming Nepal with aim to spread and publicize Christianity.  Establish good trade link between Tibet and India.  During Lichhavi and Malla period there had been enormous progress of art and culture. Architecture, paintings and sculpture were tremendously developed. 13

 Many temples, monuments, sculpture & inscription, festivals stills exists of that time which are center of tourist attraction.Chinese, Tibetan and Indians used to visit Nepal especially with religious and commercialmotives. b. TOURISM AFTER UNIFICATION OF NEPAL (1767 – 1950 AD)  1767 AD: Prithivi Narayan Shah unified scattered principalities into bigger Nepal.  1792 AD: Captain Kirk Patric, a military official came to collect facts about Nepal. He wrote a book “An Account of the Kingdom of Nepal” helped to introduce Nepal to outsiders.  1816 AD: Treaty of Sugauli was signed between Nepal and British East India Company. Beginning of regular visit of British nationals in Kathmandu.  1850-51 AD: Rana Prime Minister Junga Bdr. Rana visited Britain which brought Kingdom of Nepal into limelight in Europe.  1911/21: King George V & Prince of wales visited Nepal for hunting Tiber.  Regular visit of Rana Prime Minister to Britain and British officials to Nepal.  Earliest published record foreign visitors to Nepal found in Percival London’s book ‘Nepal’, where 153 Europeans mostly British are listed to have visited Kathmandu in a period between 1881 to 1925 AD. c. TOURISM AFTER 1950  104 years autocracy of Rana Regime was ended in 1950.  Development in Nepal slowly started taking place.  Road network was established connecting some place of Nepal with Indian Border.  Only finger count foreigners were given permission to enter Nepal. Mainly for trading, climbing and pilgrimage purpose before 1950.  1950: Maurice Herzog became the first person to summit Annapurna I.  1952 AD: Swiss geologist Tony Hagen was employed by Nepal Government for mapping geography of Nepal. Travelled 14000km in Himalaya of Nepal and retired in 1972AD.  Group of wealthy tourist, sponsored student start travelling from England to Nepal overland via Eastern Europe, Turkey, Kasmir, Manali and to Nepal for research and climbing purpose.  1953 AD: Sir Edmund Hillary and Tenzing Norgay Sherpa climbed Mt. Everest and became first to do so.  1950’s is considered most important period in Nepal’s Tourism development. World famous 14 over 8000m peaks 7 of 8 in Nepal were conquered. Annapurna I, Everest, Chooyu, Makalu, Kanchenjunga, Manaslu, Lhotse, Dhaulagiri.  The role of mountain tourism is very significant in the overall tourism sector. In fact, tourism in Nepal began with mountain tourism.  1955 AD: First tourist visa was issued to Russian citizen Boris Lisanevich, a legendary Hotelier & pioneer in Nepalese tourism. He was invited by King Mahendra to allow 14

Thomas Cook Company to Send Tourist to Nepal. Boris established first hotel “Royal Hotel”.  1955 AD: First private airline “Himalaya Airways” began its operations.  1956 AD: National Tourism Council set up five year tourism development plan under the Ministry of Industry and Commerce.  1958 AD: Royal Nepal Airlines Cooperation (RNAC) now NAC came in operation. Nepal began direct links to Indian Cities and this land locked country became more accessible to outside world.  Nepal became member of International Union Of official Travel Organization (IUOTO) now World Tourism Organization (WTO) in 1959.  1959, tourist info center was established.  1959, civil aviation act was introduced.  1960, Nepal became member of ICAO  1960, direct air liked to Delhi and Kolkata  1962, taking Tourism statistics started  1964, government passed tourism rule  1964, Hotel Shankar and 1965, Hotel Annapurna established  1964 AD: Jimmy Robert established first Travel agency “Mountain Travel Nepal” to organize trekking and climbing. Established “Tiger Tops” in Chitwan National Park began promoting and conserving wildlife. Initiated orientation to Nepalese Government about potentiality of Tourism in Nepal. Became a role model in teaching and implementing management in Tourism in Nepal. Considered as “Father of Nepalese Tourism.  1960’s & 1970’s : Hippie culture  Hippies are group of young people who followed liberal anti-war philosophy.  Prime destination for Hippie as buying & selling of Hassish was legal till 1979.  Played crucial role in advertising & promoting Nepal as tourism attraction.  Good ambassador of Nepal as they keep on telling cultural and natural beauties of Nepal on way back their home. Until 1965, all 8000+ mountains were conquered. Established Nepal as best destination for expedition and climbing. 1966, Hotel Soaltee 1972, tourism master plan developed with German expertise. 1972: NATHM was established by Government of Nepal with UNDP/ILO to produce skilled workforce required by hospitality and tourism industry. More than 20,000 professionals has trained from NATHM in different sector such as hotel management, tour and trekking guide etc. 1973: Chitwan National Park (CNP) was established to preserve and conserve wildlife. 1976, HAN and Tourism Agency Feb 23, 1977, Ministry of Tourism 1977, election of chairperson of world tourism commission for south Asia. 1978, 2nd tourism master plan formulated (Lumbini Master Plan) 15

 1979: TAAN was established to regulate, develop, and promote the trekking sector of Nepal.  1982, National Tourism Promotion Committee formed  4th priority for tourism in budget of fiscal year 1995/96  1995, tourism policy approved  Feb 1997, Nepal tourism Board Act 2057 formulated.  1998: Nepal Tourism Board (NTB) was established to promote tourism sector.  1992: Necon Air and Asian Airlines came into existence.  1998: Nepal Tourism Board (NTB) was established to promote tourism sector.  Nepal celebrated “Visit Nepal 98” to strengthen Nepal tourism.  Now, Nepal is member of UNWTO, PATA, ICAO, IAIA etc During 1950-1998, Nepal became hot spot for holiday makers, adventure seekers and cultural tourists. d. PRESENT DAY TOURISM IN NEPAL (1999 TO UNTIL NOW) DARK PERIOD (1999-2005)  1999: Hijack of Indian Airlines fleet from TIA.  2001 : “Royal Massacre” Black day in Nepalese history  2005: King Gyanendra Coup and suspended constitution.  Moist rebelled and were active in different part of Nepal.  Travelers' were not able to travel freely and felt unsecure. Results:  MESSAGE TO OUTER WORLD, NEPAL IS UNSAFE FOR TRAVELLING.  50% travel agencies were shut down  Tourism only concentrated in city area.  Decrease in length of stay. 2006: The comprehensive Peace agreement between Government and Moist was signed. Message to outside world, Nepal is now safe for travelling. Tourism slowly started picking up. The 1st election of the Constituent Assembly was held in Nepal on 10 April 2008. 2011: Nepal Tourism Year was celebrated. Due to its failure in drafting a new constitution, the CA was dissolved on 28 May 2012. Global economic crisis brought downfall in American and European visitors whereas converted into hot tourism destination for Chinese Travelers’. 2006: The comprehensive Peace agreement between Government and Moist was signed. Message to outside world, Nepal is now safe for travelling. Tourism slowly started picking up. The 1st election of the Constituent Assembly was held in Nepal on 10 April 2008. 2011: Nepal Tourism Year was celebrated. Due to its failure in drafting a new constitution, the CA was dissolved on 28 May 2012. Global economic crisis brought downfall in American and European visitors whereas converted into hot tourism destination for Chinese Travelers’. 16

 The Second Constituent Assembly election was held on 19 November 2013. On 25th April, 2015, at 11:56 local time, a massive 7.6 magnitude earthquake struck Nepal. But Most of the tourism products are safe, tourism sector in general is highly affected. The new constitution which came into effect on September 20, 2015. The 2015 Nepal blockade, which began on 23 September 2015 and backed down as of 4 February 2016, is an economic and humanitarian crisis which has severely affected Tourism Industry of Nepal and its economy.CONCLUSION  Tourism in Nepal faced lots of up’s and downs.  Great potential in tourism industry  Proper marketing/promotion needed to increase number of tourist.  Rural tourism & domestic tourism is to be encouraged.  Investment in tourism sector is must important.  Crucial role of government in management, control of illegal activities, development of new destination, and vision for tourism development is needed. 17

UNIT 4: Components of Tourism4.0 Component of TourismA tourist, in order to get to his destination, has to travel and therefore, some mode of transport isnecessary for this. This mode of transport may be a motor car, a coach, and aero plane, a ship or atrain which enables a traveler to reach his predetermined destination. The Attraction may includethe holiday destination and what is offered to the tourist. The holiday destination may offer naturalattractions like sunshine, scenic beauty or sporting facilities, etc. Accommodation is another basiccomponent which is essential for providing food and also rest. After having reached hisdestination, a tourist must have some kind of accommodation which provides him food and sleep.Locate with its attractions and amenities is the most important as these are very basic to tourism.Unless these, the tourists will not be motivated to go to a particular place. However, since interestand tastes of tourists vary widely, they might choose from wide range of attractions available tovarious destinations all over the world.4.1 Five A’s components of tourism AccommodationActivities Five Attraction A'sAmenities Accessibility 18

4.1.1 AttractionThere are two types tourism attraction:- a) Man made attraction: - the attractions made by the people are called man made attraction. These are ancient and historical sites, archeological sites, cultural attraction etc. these man made attraction are as follows:-  Ancient and historical sites  Archeological sites  Cultural attraction  Zoo and museums  Events sport  Trade fare and exhibition  Institution  Religious place  Recreational places  Shopping center b) Natural Attraction: The place gifted by the nature is called natural attraction. They are very important for tourism these are flora and fauna, national parks, lakes, rivers, water falls, mountains valley, natural wonders; caves, gorge, natural views, rocks, spas, hot spring etc. these natural attraction plays very vital roles to develop tourism in particular places and destinations. In Nepal Himalayas, lakes, mountain, rivers etc. are the natural attraction for tourist.4.1.2 AccommodationAccommodation is very important component of tourism. People need comfortable place for rest after traveling. Therefore there are two important elements of tourism; one is travel to the destination and other is staying in the particular destination. Travel cannot be completed in as single day so travelers who leave their houses need accommodation at their destination and during period of journey for rest.  International hotel  Resort  Commercial/business hotel  Inns  Lodge  Motel4.1.3 AccessibilityAccessibility is the means of transportations by which a tourist can reach the particular destinations for pleasure. Transportation plays very important role in tourism. In twenty first century transport made the world smallest by its facilities. Different means of transportation can be mentioned as follows:-  road transportation 19

 air transportation  rail transportation  sea transportationIn the context of Nepal only road and air transportation are usually available. Rail transportationis nominal. Being a landlocked country sea is not available. We do not have well organizedtransportation facilities to reach our tourist destination through we are very reach regardingtourist destination.4.1.4 Amenities/comforts/facilitiesAmenities are the facilities added to the Attraction, accommodation and transportation. These are the very important activities. Through these amenities themselves do not generate tourist flow but their absence might detract the tourist. This includes different facilities and services provided by the government, travel agency, intermediaries, commission agent, hotel, airlines and transport companies, financial instants, insurance agent, communication facilities.Types of facilities:  Facilities provided by the government are issue of passport, visa, foreign exchange, extension of tourist etc.  Facilities provided by accommodation establishment are swimming pool, recreation center, conferences hall, gift shops, information center, sport facilities etc.  Facilities provided by airlines by operating national and international flights for easy travelling.  Facilities provided by financial institution by offering traveler cheque, credit card, money transfer, foreign exchange etc.  Facility provided by communication system are postal service, faxes, email, telephone etc.  Facilities provided by travel agency are providing tour packages, travelling facilities etc.4.1.5 ActivitiesPeople take break because they want to see and do different things. Some like an active holidayand would like to go for water sports fishing, natural trails etc. while some would rather just sitback and relax. A number of activities may be available at the destination to suit various age groupsand social backgrounds. Tourist may be attracted to a destination for any one or more of the aboveactivities or attractions located there. 20

Unit 5: Tourism product and Impact of tourism5.1 Tourism productTourism is considered as a product because just like any product it is something that attract.Tourists are those who visited different places and enjoy the activities and adventures it offersthem. And the tourism increases income and provide economic stability to the particularcommunity of the area. It is a chain reaction tourists visited earns goods through their services andadditional revenue for those countries. This is why the government of all countries i.e. may bedeveloped or developing phase is paying more attention to earn foreign exchange and revenuefrom the tourist activities. That provides economic stability to that particular country. Tourismindustry also attracts foreign investors.  Tourism Products are those products which can be sold in tourism market. It can be anything which provides satisfaction during the course of visit of the particular tourist.  Tourism Product An action, event or experience in some tourist activities and which utilizes the natural and cultural resources of the country.5.1.1 Define Tourism Product\"Tourism product is something that can be offered to tourists to visit a tourist destination. Theproducts which satisfy the leisure, pleasure, religious or business needs at places other than thenormal place of residence are known as tourism products.\"Tourism products are offered in the market with a cost. Tourism products are the prime reason fortourist to choose a destination. Tourism product helps in fetching revenue for the destination. Sothey should be properly marketed and preserved.5.1.2 Nature and Characteristic of Tourism productA. Nature of Tourism ProductThe nature of tourism product comprises two different types of travel to the destination. These arenon-discretionary and discretionary travel. Nature of Tourism Product Non- DiscretionaryDiscretionary 21

i. Non-discretionary travel: under this undertaking travel is a must and the traveller has to travelto a particular destination and does not have much choice. These are business traveller travellingto attend a conference or a family travelling to their home town for a wedding or a funeral or astudent flying back to college etc.ii. Discretionary Travel:it is concerned with choice; the traveller can select the destination/attraction and time of travelling, for example, to stay at home and relax, drive to nearby beachresort, or fly to Dubai for a vacation.Both these travel segments have different needs and wants. For example advertisement will affectthe discretionary traveller because of choice. In both discretionary and non-discretionary travel,the nature of tourism product is the purchase of intangible services.B. Characteristics/feature of Tourism product:-  Tourism products are available at the destination. They cannot be moved outside the destination. So the tourist has to be present at the destination for consumption of tourism products.  Tourism products cannot be brought back with the tourist to his/her home. Only memories of the tourism products in form of photographs, videos can be with the tourist.  Tourism products cannot be stored. Out of 100 seats there are 80 seats occupied in an airplane from Kathmandu to Mumbai,and then there is loss of revenue for 20 seats for that flight. And this loss can never be recovered.  Tourism products cannot be owned by the tourist. If you visit TajMahal by purchasing the entry ticket, it does not mean you own TajMahal.  Tourism products have to be purchased and then consumed by the buyer at the destination. If one has to enjoy Lakeside of Pokhara, then one has to make booking for hotel, transportation etc. by making payment. Then has to go to Pokhara and enjoy the Lakeside. It cannot be like you can test drive various cars before purchasing one.  Tourism products are made available by people. So they are highly dependent on people who are providing it. If a guide is unable to give you good commentary on Pashupati temple then your visit to Pashupati temple will not be successful.  Tourism products are highly dependent upon the experience of the tourist. So it becomes difficult to measure the level of product quality.5.1.3 Types of Tourism Producti Natural Tourism Product This kind of product includes mostly attractions that act as a pull factor for a visitor to visit adestination. Natural settings such as unique landscape, dense forest, mountains, lakes and beacheshave traditionally been center for attraction for tourists worldwide.ii Man-made Tourism Product Human being over centuries, have created facilities for comfort of living. Such creations are naturalmanifestations of human endeavor in the process of evolution. Such manifestations, elegant structure 22

or facilities by creative humans become attraction for commons in the civilization. These types ofproducts include not only core attractions but facilities and services those have made a mark inthemselves and have become attractions for most. For example palace on wheel, tourists train basicallya mode for transportation is graduated as an attraction in itself. Theme park is another example of man-made attraction, which means the basic term for a compilation of rides and other amusement attractionspull together for the purpose of entertaining a group of people. A theme park includes a combinationof attractions which can be classified into several categories: thrill rides, roller coasters, family rides,water attractions or (indoor) dark rides. Major part of theme parks’ revenue comes from entrance fees.Most theme parks also charge for car parking and ticket prices do not include food, which can be verycostly. Almost all amusement parks operate using one of two admission principles: Pay as you go (payfor rides individually) or Pay one price (one big admission charge, for almost all of the attractions).iii Symbiotic Tourism Product Apart from pure natural and man-made products there are some types of products which areblend of both natural and man-made features. For instance a zoo, a water park, aero sports zone arehuman creations at natural attractions. Nature here is the core resource on which human being hascreated facilities. These products thus are called as creations by symbiosis of nature and man.Iv. Site Based Tourism Products When an attraction is a physical setting at place or a site it is termed as site based tourismproduct. As physical settings such sites are permanent and can only be modified but cannot be replacedtotally. For examples beaches, hill stations, monuments & historical places. There are occasions/seasons however when tourists flock to the destination in large number.v. Event Based Tourism Products Where an event is an attraction, tourists visit the event as spectators, participants or sometimes forboth. The events may be traditional, occasional or promotional in nature. The famous Bibahpanchami,Ramnavmi and Parikarma at Janakpurare traditional gathering of more than lakhs of pilgrims.Occasional events are social or cultural gatherings for examples marriages, parties, conferences andconventions or business meets where participants belong to specific target group. On the other handpromotional events are gatherings organized to popularize the destination or a company product or aregatherings for some specific purpose. Street Festival at lakeside of Pokhara is promotional eventorganized by NTB, Paschimanchal hotel association pokhara and other tourism related organizationsand is attended by thousands of spectators. Event as tourist attractions are temporary, and are oftenmounted in order to increase the number of tourists to a particular destination.5.1.4 Tourism product of NepalThe tourism product of Nepal is the total experience. A tourist will have when they visited atourist destination. This total experience will include:-  Geographical region  Natural and manmade resources  Cultural and historical feature  Infrastructure  Superstructure and Climate 23

5.2 Positive and Negative Impact of TourismThe positive and negative impacts of tourism are as follows:Positive Impact of the Tourism:  it helps the national income of the country.  It provides the employment opportunity.  It helps the development of the infrastructure of the country.  It helps to preserve the heritage of the country.  It helps to promote country culture.  It helps to maintain brotherhood relation between foreign countries.  Provides wide knowledge about different country.  Opportunity to learn foreign language.  Improvement of business.Negative Impact of Tourism:  Addiction to the drug: - the addition to the drugs and its measure are easily exported and imported which are very harmful.  It directly effect on environment.  Culture disturbance: - as we know young generation copy the life of foreign so our culture is being disturbed as result we celebrate valentine day, rose day, friendship day, April full leaving indrajatra, sankranti, losar etc.  Commercialization of the local people.  Less priority of domestic product.  Increases the incidence of crime, prostitution, and gambling  Develops excess demand for resources 24

Unit 6: Tourism related organizations: Its role and functions.6.1 National Tourism Related Organizations, their nature and primary role6.1.1 Ministry of Tourism and Civil Aviation (MOTCA)Tourism reaches into the varied aspects of Nepalese life and its benefits are encompassed bydiverse sectors directly and indirectly. It generates employment opportunities and helps in thepromotion and conservation of the art and culture. The tourism industry is one of the foreigncurrency earners in the country and thus makes a significant contribution to the economy.Government of Nepal has been actively promoting tourism in Nepal and has always encouragedthe private sector for their involvement and participation. The Ministry of Culture, Tourism &Civil Aviation (MOTCA) gives equal importance to conservation of natural, cultural and humanresources.Ministry of Tourism first came into existence in 2035 BS (1978 AD). In 2039 (1982 AD), CivilAviation was also merged into the Ministry of Tourism and it became the Ministry of Tourism &Civil Aviation. In 2057 (2000 AD), Cultural sector was also integrated in the Ministry and calledthe Ministry of Culture, Tourism & Civil Aviation (MOCTCA). In August 31, 2008 (B.S. 2065-5-15) the ministry was divided into two ministries, i.e. Ministry of Tourism and Civil Aviation andMinistry of Culture and State Restructuring. The name of the ministry became the Ministry ofTourism and Civil Aviation (MOTCA). The cultural sector has been integrated with the tourismand civil aviation on May 18, 2012 (2069-02-05 BS). The name of the ministry has now becomethe Ministry of Culture, Tourism and Civil Aviation.Functions of MOTCA:  Coordinate with various national and international organization for development and promotion of tourism.  Preservation of heritage and culture of country and various ethnic groups.  Promote the tourism industry of Nepal.  To do research and studies for development and policy planning.  To develop the infrastructure of the nation for tourism promotion.  Control, monitor and evaluate the activities of public and private organization which is working in the field of tourism.  Formulate and implementation of policies, programs and rules and regulations as well as their timely implementation.  Construction, renovation, preservation and advancement of airports and other respective transportation. 25

6.1.2 Nepal Tourism Boards (NTB)Nepal Tourism Board is a national organization established in 1998 by an act of Parliament in theform of partnership between the Government of Nepal and private sector tourism industry todevelop and market Nepal as an attractive tourist destination. The Board provides platform forvision-drawn leadership for Nepal’s tourism sector by integrating Government commitment withthe dynamism of private sector. NTB is promoting Nepal in the domestic and international marketand is working toward repositioning the image of the country. It also aims to regulate productdevelopment activities. Fund for NTB is collected in the form of Tourist Service Fee fromdeparting foreign passengers at the Tribhuvan International Airport, Kathmandu, thus keeping itfinancially independent. The Board chaired by the Secretary at the Ministry of Tourism and CivilAviation consists of 11 board members with Five Government representatives, five private sectorrepresentatives and the Chief Executive Officer.“NATURALLY NEPAL, Once is not enough” is the tourism brand of Nepal.”Naturally Nepal” isa simple expression that repackages the Nepal brand in a positive light. “Once is not Enough” notonly accurately captures the tourist’s emotions at the airport’s departure gate but also serves as adecision tool that enables the Nepali tourism industry individually and collectively to focus bothon consumer retention and acquisition.Launching of Nepal brand has been done for the five business reasons:  More compelling repackage the diverse, existing product offering  More tourists increase the number of tourists visiting Nepal  More money increase the revenues to the nation  More focus align NTB’s stakeholders and the Nepali tourist industry to a common future  More consistency define branding guidelines and investment vehiclesBrand Nepal is also promoted as “the next generation mountain destination for weekend breaks,adventure holidays, and life time experiences for people who live in cosmopolitan cities and travelinternationally”.Nepal Tourism Board is assigned with statutory responsibilities by the Nepal Tourism Board Act2053 as follows:  To develop and introduce Nepal as an attractive tourist destination in the international marketplace.  To promote the tourism industry in the country while working for the conservation of natural, environmental and cultural resources.  To work towards increasing the gross domestic products and foreign exchange income by means of promoting the tourism industry.  To work towards increasing the employment opportunities in the same industry.  To develop Nepal as a secure, dependable as well as an attractive travel destination by establishing a respectable travel trade community.  To work towards providing quality service to the tourists visiting Nepal.  To study the bottlenecks in the tourism sector by means of conducting research and getting some important measures adopted to address the problems.  To promote and develop institutions for the promotion of tourism industry. 26

The Act also defines the Board’s ancillary responsibilities, which allow the Board to undertake awide range of developmental functions within Nepal and marketing activities both in Nepal andoverseas. These responsibilities also stress the Board’s consultative and advisory functions.The Executive Committee of Nepal Tourism Board comprises 11 members including Chairman,who is the Secretary of Ministry of Tourism and Civil Aviation (MoTCA). Out of 11 members,five members represent various government bodies and five represent private sector who arenominated by Government of Nepal to serve the Board for the period of 3 years.The Chief Executive Officer (CEO) of Nepal Tourism Board serves as a Member Secretary to theBoard. NTB also has the provision of Observers in the EC. Representatives from Tourism IndustryDivision(MoTCA), Nepal Airlines Corporation and National Trust for Nature Conservation arecurrently serving as Observers in the EC.Functions of NTB  Formulation and implementation of necessary programme  Coordination and cooperation with stakeholders  Protection, promotion and conservation  Motivation, Facilitation and suggestion  Organize seminar and conference  Research and studies  Promotion of Tourism Industry6.1.3 Hotel Association of Nepal (HAN)Hotel Association of Nepal (HAN) was established in the year 1966, when it had just eight hotelsand all of them were situated in Kathmandu itself. In the first ten years of its existence, due to theearly stage of the industrial age as well as the membership being extremely homogenous, the HotelAssociation of Nepal was able to make its mark on the governmental regulatory and socialupgrading aspects of tourism.Furthermore, HAN was able to project itself as a leader in the decision making process pertainingto tourism. No aspects of tourism policies and their implementation could avoid the forcefulimprint of HAN. The hotel industry at that time was perhaps one of the most successful industriesin the scenario for hardly any other industry existed.The period of 1970 to early 1980 was prolific year for tourism growth and its spread. It was in thisperiod that all categories of star rated hotels grew not only within the confines of Kathmandu butit also spread its wings beyond the valley such as Pokhara, Chitwan and other districts of thisvalley itself. Till then tourism was still within the confines of sustainability and hotels helped inthe growth of other segments of the tourism industry. Travel and trekking agents became moreprofessional and their size of the market and its returns grew in manageable levels.The 1980's ushered in the idea of a borderless world and as such trade and commerce began toflow from one part of the world to the next. The tourism industry, the very heart of the concept ofborderless economy, obviously began to get its full share of benefit. On the other hand, the concept 27

of international standards made the need for international network of marketing. For MoreInformation:MissionHAN’s mission is to facilitate the full potential of Nepal’s hotel and tourism industry by raisingconcerted voice to make conducive environment for the growth of this sector. HAN aims at servingits members by fulfilling their needs and building partnerships in a socially responsible andsustainable manner.VisionHAN envisions itself to become the national driving force to achieve world-class vibrant hotelindustry with the private sector leadership, which will fuel the country’s development.ObjectiveHAN objective is to protect and promote our member hoteliers so they can prosper and progress.HAN emphasis lies in the adaptability and creativity in the hospitality industry, which ensures notjust adapting change but anticipating change and in essence to forge its way to a global market.  To promote the hotel industry and to protect the lawful rights of its members.  To create uniformity in the rules of administration and management of the hotels and other hospitality businesses.  To raise the standard of the hospitality service by interchange of personnel, assistance in staffing of hotels through education and trainings in the fields of hotel industry.  To investigate and inquire into all the issues and problems faced by the members.  To develop laws related to the hospitality industry and tourism sector and raise voice against any laws detrimental to the development of this industry.  To further international partnership and cooperation.  To promote good relationship and understanding among the employee and employers within the industry.  To undertake arbitration towards the settlement of disputes between: i) Members of the association ii) Members of the association and employees iii) Members and other individuals  To promote co-operation among national, international and regional organizations related to the hospitality and tourism industryWebsite: http://www.hotelassociation.org.np/6.1.4 Nepal Association of Travel Agent (NATA)After almost one month since the first ever government led Nepali sales mission to China returnedto the country; Association of Tour and Travel Agents (NATTA) is putting an additional effort topromote Nepal in the Chinese market through its Discover Nepal-China mission. Organizing apress conference in the capital today, the Association informed that the team in the mission hasincorporated most of the private sector tour entrepreneurs that have received government authorityto handle Chinese tourists. \"The mission would concentrate its campaign in two cities-Beijing andShanghai,\" said Joy Dewan, head of the mission and the President of NATTA. The main concernof the mission would be about the interaction between the Chinese and Nepali tour operators thathave been authorized for tour operation, he informed. Nepali entrepreneurs are waiting for a long 28

time to see a good number of Chinese tourists since the signing of historic agreement between theGovernment of Nepal and China last November, which made Nepal Approved Destination Status(ADS) for Chinese tourists. The current major problems are the limited air services.As both the Governments have principally agreed to review exiting air service agreement, theaccessibility problems would be solved,\" said Dewan \"However, we will do our best to promoteNepal as the cultural and scenic destination\", he added. During the meet, Shi Xiang, the directorof China National Tourism Office - Kathmandu informed that the Chinese Government hasauthorized additional 450 Chinese travel agencies to organize the tour between the two countriesand handed over the list of the agencies to NATTA. He informed that the intensive promotion isrequired to attract Chinese tourists to this Himalayan area. \"The Mission can be successful increating awareness in the Chinese market about the beautiful Nepali tourism products.\" he said.Currently around 300 travel agencies, out of some 600 registered are in active operation in thecountry and the NATTA is demanding the government to authorize all these agencies to operateChinese tourists. The mission that comprises 36 tourism entrepreneurs including three hoteliershad visited the city to Shanghai from 23 to 31 July, 2002.For More Information: Website:The aims and objectives of associations are:  Contribute to the healthy development of tourist industry and trade  Develop goodwill among travel agent on all subject of common interests and welfare & protect the professional interest  Provide cooperation and consultation to the government for the promotion of tourism in Nepal.  Work directly and indirectly for institutional mission of all matters pertaining to interests of tourist industry & trade.  Enthuse feeling of close coordination and professional's ethics among all components engaged in tourist industry & trade.  Undertake research work for promotion of tourism; obtain national and international recognitions for the associations.  Promote and safeguard the interests of other professional's trade and industries that are ancillary to tourism.  Promote wide spread publicity for tourism development.http://www.natta.org.np/6.1.5 Trekking Agent Association of Nepal (TAAN)Trekking Agencies' Association of Nepal (TAAN) is an umbrella organisation of trekking agenciesand adventure tour operators in the country. TAAN was established in the year 1979 by a handfulof trekking agencies, who felt the need of a forum where they could discuss the problems andissues in their business and moreover to recognise the trekking business as an industry. They alsofelt such a body was also needed to provide meaningful inputs to the government to formulaterules and regulations for the benefit of all. They also felt the need of a body which could undertakethe major responsibilities to develop and promote adventure tourism in the country. This led to theformation of TAAN. 29

Ever since its inception, the member agencies have been increasing and from a handful of trekkingagencies in the initial stage, it now has nearly 600 members. Though in the initial stage, TAANconfined its members to the domestic agencies only, it has opened up its membership to foreignorganisations as well. It has 14 associated members now.TAAN member agents meet every year to endorse policy guidelines, which govern the executivebody. It frequently communicates with the concerned bodies of the government to simplify theprocedures and solve the problems related to trekking business.The executive body has 19 members, among which 14 are elected by general members, two areex-officio members while three are nominated by the executive committee.TAAN also has a chapter in Pokhara, where around 50 trekking and adventure operators, areaffiliated.Objectives:  Develop and promote mountain tourism in Nepal  Preservation of the mountain environment of Nepal.  Promote the rights of the member trekking agencies.  Provide meaningful inputs to Government of Nepal for the development of the industry.  Develop linkages with the national and international organizations to promote mountain tourism. Conduct various trainings and educational programs to generate skilled manpower.  Promotion of the new trekking routes.Activities:TAAN conducts various activities in order to meet its objectives. Some of these activities are ofregular nature while some take place as and when necessary. The regular activities of theassociation are:Promotional Activities:  Organising different meetings, conferences, seminars and talk programs on tourism.  To participate in tourism related fairs, marts and conferences within and outside the country.  Providing meaningful inputs to the government.  Publish various tourism related brochures, magazines etc for the promotion of the mountain tourism.  Develop bilateral linkages with similar like-minded organization in other countriesEnvironmental Activities  Create environmental awareness  Organise various environment conservation programs 30

Philanthropic Activities:  To raise and deliver funds for the victims of various natural and human calamities.Training courses  Trekking Agents Association of Nepal (TAAN) organizes trekking guide and cook training courses in coordination with the Nepal Academy of Tourism and Hotel Management (NATHM).For More Information: Website: http://www.taan.org.np/6.1.6 Nepal Association of Rafting Agent (NARA)Nepal, with its bountiful water flowing from the peaks of the Himalayas and the high passes fromthe Tibetan plateau, possesses some of the finest whitewater rivers in the world. Additionally,Nepal is also home to one of the strongest and largest river tourism communities in the globalindustry. Comprising of approximately 61 companies, Nepal's river tourism industry employsthousands of native Nepalese and is entirely Nepali owned, operated and supplied, a fact whichmakes it unique among other forms of tourism development in the Himalayan area (in fact in theworld) However, whitewater rafting in Nepal, well known among several specialist river runningcommunities across the world, has had relatively little publicity and as such is an extremelyvaluable yet little appreciated and publicized form of sustainable development for the country ofNepal.The Event: With this in mind, the Nepal Association of Rafting Agents in cooperation with PeakUK, one of England's largest whitewater kayaking equipment companies, has developed a proposalfor the introduction of a river running event that has the potential to stimulate interest in Nepal asa tourist destination in general and Nepal's rivers in particular as one of the world's premier riverrunning tourism destinations. The Peak UK Himalayan Whitewater Challenge in Nepal is a multi-discipline one boat Event that combines extreme slalom / river running skills with downriver speedand freestyle action to find an overall whitewater champion. This event, which will combine stateof the art forms of extreme whitewater slalom, head to head down river racing and amazingdisplays of freestyle rodeo maneuvers into one world class competitive event. Additionally, thisevent will also allow for a competitive display of Nepal's rafting history as there will be a downriver raft race in which Nepal's original Nepali raft guides, the current company owners, will guiderafts filled with their companies' best guides in a head to head race down the Bhotekoshi river toclaim the honor of 'Top OG' (Original Guide). As such, this event promises to be not only a worldclass competitive affair, but also an opportunity for Nepal to demonstrate its long standing traditionof whitewater rafting expertise among its citizens.Event Size and Expected Economic Benefits to Nepal's Tourism Industry. The event's organizerexpected to attract to approximately 100-150 foreign competitors and approximately 100 Nepaliparticipants, in addition to nearly 200-250 spectators, all of whom will help spread the world ofNepal's awesome whitewater tourism potential to those that they know aboard. Additionally, theforeign participants will all ply into Katmandu's Tribhuban International Airport, many of 31

Nepalese air couriers Nepal Airline and then stay in Katmandu's hotels and guesthouse. Wherethey will shop for good and eat at local restaurants, helping to bolster the country's critical tourismindustry that has taken such hard blows in 2001 due to both national and international crises.Additionally, past experience has shown that these participants will travel throughout Nepal afterthe events, to paddle many of Nepal's world class rivers and as such will help to benefit other areasthroughout the country economically. Further, as a by-product of the event is, publicity aboutNepal as a safe and secure tourism destination will be disseminated helping to stimulate other non-whitewater bases sectors of Nepal's tourism industry as well.For More Information: Website: http://www.raftingassociation.org.np/6.2 International Tourism Related Organization6.2.1 United Nation World Tourism Organization (UNWTO)The United Nations World Tourism Organization (UNWTO), an inter-governmental technicalbody dealing with all aspects of tourism began its legal existence on January 2, 1975. It wasoriginally called as World Tourism Organization, prior to the World Trade Organization whichwas formulated in 1990. The rapid expansion of travel had created the need for a world body ableto deal with tourism problems at the governmental level and this led to the formation of UNWTO.The headquarters of the organization were set up in Madrid (Spain) in January 1976. The UNWTOhas a very emphatic technical character.World Tourism Organization is the United Nations agency responsible for the promotion ofresponsible, sustainable and universally accessible tourism. As the leading internationalorganization in the field of tourism, UNWTO promotes tourism as a driver of economic growth,inclusive development and environmental sustainability and offers leadership and support tothe sector in advancing knowledge and tourism policies worldwide.UNWTO encourages the implementation of the Global Code of Ethics for Tourism, to maximizetourism’s socio-economic contribution while minimizing its possible negative impacts, and iscommitted to promoting tourism as an instrument in achieving the United Nations MillenniumDevelopment Goals (MDGs), geared towards reducing poverty and fostering sustainabledevelopment. UNWTO generates market knowledge, promotes competitive and sustainabletourism policies and instruments, fosters tourism education and training, and works to maketourism an effective tool for development through technical assistance projects in over 100countries around the world.UNWTO’s membership includes 155 countries, 7 territories and over 400 Affiliate Membersrepresenting the private sector, educational institutions, tourism associations and local tourismauthorities.Objectives  Promotion and development of tourism with a view to contributing to economic development, international understanding, peace, prosperity and universal respect for, and observance of, human rights and fundamental freedoms for all without distinction to either race, sex, language or religion.  Uplift and stimulate the interest of the developing countries in the field of tourism. 32

 Maintain effective collaboration with the appropriate organs of the UN and its specialized agencies.FunctionsThe UNWTO performs a number of activities for its members relating to promotion anddevelopment of tourism. The major functions include:  Constant review of tourism trends and developments and exercising vigilance over changes in world economic and social conditions affecting tourism, market fluctuations and maintenance of standards within the tourism sector.  Clearing house for all available information on international and domestic tourism including statistical data, legislation and regulations, facilities and special events.  Systematic collection, analysis and dissemination of data on various aspects of tourism.  Collecting legislative texts, regulations and documentation on all aspects of travel.  Conducting research studies covering tourism markets, plant and enterprises, physical planning and area development, promotion and marketing, economic analysis and financing techniques etc.  Regular supply of studies, as well as updated information on trends in the various fields of tourism to its members.  Fostering the adoption of measures in cooperation with competent specialized bodies regarding simplifying frontier formalities and removing barriers to the free movement of tourists.  Organizing and convening international conferences, seminars, workshops, round tables and technical meetings on all aspects of tourism.  Preparation of draft international agreements on tourism  Examining vocational training programmes with a view to contributing to the establishment of suitable teaching programmes tailored to specific needs, especially in the developing countries.MembersThere are three categories of members in UNWTO. They are  Full Members: - They consist of all sovereign states. As of 2010, its membership included 154 member states.  Associate Members: - They are the territories or groups of territories not responsible for their external relations but whose membership is approved by the state assuming responsibility for their external relations. As of 2010 there were seven associate members (Flemish Community, Puerto Rico, Aruba, Hong Kong, Macau, Madeira, Netherlands Antilles), two observers (Holy See, Palestine). 15 of these members have withdrawn from the organization for different periods in the past: Australia, Bahamas, Bahrain, Canada, Costa Rica, El Salvador, Honduras, Kuwait, Malaysia, Nicaragua, Panama, Philippines, Qatar, Thailand and Puerto Rico.  Affiliate Members: - They are international bodies, both inter-governmental and non- governmental concerned with specialized interests in tourism, as well as commercial and non-commercial bodies and associations hose activities are related to the aims of WTO or fall within its competence. There are some 350 affiliate members, representing the private sector, educational institutions, tourism associations and local tourism authorities.Structure  General Assembly: The General Assembly is the supreme organ of the Organization. Its ordinary sessions, held every two years, are attended by delegates of the Full and Associate 33

Members, as well as representatives from the Business Council. It is the most important meeting of senior tourism officials and high-level sector from all over the world representatives of the private.  Regional Commissions: Established in 1975 as subsidiary organs of the General Assembly, the six Regional Commissions normally meet once a year. They enable member States to maintain contact with one another and with the Secretariat between sessions of the General Assembly, to which they submit their proposals and convey their concerns. Each Commission elects one Chairman and its Vice-Chairmen from among its Members for a term of two years commencing from one session to the next session of the Assembly.  Executive Council: The Executive Councils task is to take all necessary measures, in consultation with the Secretary-General, for the implementation of its own decisions and recommendations of the Assembly and report thereon to the Assembly. The Council meets at least twice a year. The Council consists of Full Members elected by the Assembly in the proportion of one Member for every five Full Members, in accordance with the Rules of Procedure laid down by the Assembly with a view to achieving fair and equitable geographical distribution.The term of office of Members elected to the Council is four years and elections for one-half ofthe Council membership are held every two years. Spain is a Permanent Member of the ExecutiveCouncil.  Committees  World Committee on Tourism Ethics  Programme Committee  Committee on Budget and Finance  Committee on Market and Competitiveness  Committee on Statistics and the Tourism Satellite account  Sustainable Development of Tourism Committee  Committee on Poverty Reduction  Committee for the Review of Applications for Affiliate Membership  SecretariatThe Secretariat is led by Secretary-General and interim TalebRifai of Jordan, who supervises about110 full-time staff at UNWTO›s Madrid Headquarters. He is assisted by the Deputy Secretary-General. These officials are responsible for implementing UNWTO›s programme of work andserving the needs of Members. The Affiliate Members are supported by a full-time ExecutiveDirector at the Madrid Headquarters. The Secretariat also includes a regional support office forAsia-Pacific in Osaka, Japan, financed by the Japanese Government.The organization is performing extremely useful service of a concrete and creative character byfacilitating the exchange of technical information, the making of specialized studies, the holdingof special seminars adapted to world regional requirements and advanced vocational trainingcourses. The essentially practical nature of its work programme, tailored as it is to regionalrequirements, takes full cognizance of the problems peculiar to countries and regions in all stagesof its development, such as investments, financial questions, physical planning and areadevelopment, economic analysis, marketing and market surveys- all this not only with a secretarialapproach but with a comprehensive concern from the point of view of the state. 34

The creation of UNWTO coincided with the universal recognition of tourism as an importantinstrument of economic and social development and its consequent ascendancy to full governmentresponsibility. An inter-governmental body of tourism officials, such as the UNWTO isempowered to act in the name of their governments and speak in terms of the impact of tourismon the balance of payments. The creation of UNWTO thus is not only a proof that the states arefully conscious of their own responsibilities in the field of tourism, but also of the establishmentof tourism to its rightful ranking at the international level.The UNWTO’s activities cover all sectors of tourism on a worldwide basis. It provides aninternational forum where tourism officials, whether governmental or non-governmental, candiscuss problems and exchange ideas. Representatives of the private sector also have access to itsmembership. UNWTO works in close cooperation with almost all international organizations, theUNO in particular, as well as with commercial and non-commercial bodies involved in tourism.6.2.2 Pacific Asia Travel Association (PATA)Pacific Asia Travel Association (PATA) was founded in the year 1951 as a non-profit corporationto stimulate interest in the Pacific region as a vacation land, and to develop, promote and facilitatetravel to and among the many Pacific destinations. PATA’s first conference was held in January1952 in Honolulu and its headquarters were established in San Francisco, USA in 1953. PATAhas its own Director for Europe who is based in London and works to promote traffic from theEuropean markets into the Pacific region. PATA’s first Asian office was opened in Manila,Philippines in 1976.The organization provides the meeting point for the people involved in all aspects of the traveltrade from a large number of countries. It focuses attention on travel opportunities in membercountries and builds up greater awareness and specific contacts among the travel trade in countriesfrom where the tourists originate. The underlying philosophy of PATA is that the entire travelindustry must work together to develop an ever-increasing flow of pleasure travel from which eachmember will derive a fair share of the total business.As a non-profit organization PATA was set up with the objective of developing, promoting andfacilitating travel to and within the Pacific area and South East Asian region. It primarily operatesin the United States market which is the world’s biggest travel market. The organization providesthe meeting point for the people involved in all aspects of the travel trade from a large number ofcountries. It focuses attention on travel opportunities in member countries and builds up greaterawareness and specific contacts among the travel trade in countries from where the touristsoriginate. The underlying philosophy of PATA is that the entire travel industry must work togetherto develop an ever-increasing flow of pleasure travel from which each member will derive a fairshare of the total businessFunctions  Assist small and up- coming destinations to develop their infrastructure, providing expertise, and planning group travel schemes.  Provide up-to-date information and practical and theoretical experience in the field of tourism.  Developing tactical destination marketing programmes.  Organize educational and training programmes for human resource development.\ 35

 Organize annual conferences, seminars and workshops to discuss the developmental issues.  Promote Asia Pacific region as major tourist destination.  Publish travel hand books and manuals such as Pacific travel news, Hotel directory, travel guide etc.MembersPATA has following nine categories of members:  Active Government Members consist of primary official organizations designated by the government of any nation, territory, or political division, wholly or partially in the Pacific area.  Associate Government Members consist of nay organization charged with the responsibility of the domestic or overseas promotion of tourism as designated by the government of any nation, territory, or political division, either situated outside the Pacific area, or situated within the Pacific area but not being the primary official organization designated for the overseas promotion of travel, or not meeting other criteria as might be required for active government members.  Active Carrier Members consist of any governmental recognized, registered or certified air or steamship line operating vehicles having individual passenger capacity in excess of twelve passengers and providing regular scheduled common carrier passenger service to and within the service area.  Associate Carrier Members consist of any government recognized passenger carrier operation vehicles each having a passenger capacity of twelve or fewer passengers and providing regular scheduled common carriage passenger service or having a passengercapacity in excess of twelve passengers but not providing passenger service on the regular common carriage basis as prescribed for active carrier members.  Active Industry Members consist of hotel organization having management authority as distinguished from mere sales, advertising or reservation direction, over one or more hotels with a total of one thousand or more guest rooms in one or more Pacific areas, tour operation organizations excluding air or ship transportation.  Allied members consist of travel agencies, tour operators, hotel representatives and firms serving as general agents or representing various segments of the Pacific travel industry  Affiliated Allied consist of branch offices of an allied member travel agency or tour operator.  Associate Members consist of individual operating organisations and firms such as communication media, media representatives, advertising, public relations and research agencies having definite interest in Pacific travel.  Sustaining Members consist of those organisations, firms or individuals whose commercial or cultural interests, in the judgment of the Board of Directors, will further contribute to the aims of the Association.ActivitiesThe Pacific Asia Travel Association performs a variety of functions. These include:  Pacific Travel Conference and Workshop: During the first four months of each year, PATA sponsors and organizes a conference of its members with the objectives of reviewing the progress, exchanging ideas and planning for future programmes. These meetings are 36

held at different areas. The annual conferences attract a large number of delegates from all over the world. The conference also serves as a unique promotional tool for the host government providing an opportunity to the travel industry from abroad to get a sample of what it has to offer in terms of tourist attractions and future tourism plans to the foreign visitor.  Marketing: A long-range marketing programme coordinates all the promotional functions of PATA for a maximum impact in the consumer market and also among sales agents. The marketing programme includes: advertising, publicity and promotion. An extensive advertising programme schedule is carried in leading national magazines of North America with a view to increase interest in the Pacific region as a major travel area. The association prepares and distributes a wide selection of selling aids and sales promotion materials to travel agents and tour operators throughout the world.  Research and Development: The Association’s research programme is designed to provide it with the marketing information needed to formulate its own marketing programme as well as to provide its members with information which will assist them in designing their own programmes. The Association organises research seminars, research presentations and technical assistance programmes for its members.6.2.3 International Air Transport Association(IATA)In the business of travel, the International Air Transport Association (IATA), the worldorganization of scheduled airlines played a central role since its inception in the year 1945. Aworld association of about 200 Active Members and 35 Associate Members, the International AirTransport Association was a result of the rapid expansion in the network of international airlinesin the years following the Second World War. A need for the worldwide regulation of air trafficincluding co-coordinating international air fares and rates was felt and consequently an 37

international conference was called by President Franklin D. Roosevelt of the United States ofAmerica at Chicago from November 1 to December 7, 1944.The convention constituted two permanent bodies, namely, the International Air TransportAssociation (IATA) and the International Civil Aviation Organisation (ICAO). However, beforereaching the position that now it occupies in the field of aviation, IATA passed through severalstages, in parallel with a spectacular development of commercial aviation. Its modest beginningdate back to 1919 when the International Air Traffic Association was founded in Hague by half adozen European airlines that had just been created right from the beginning; they recognized theneed to cooperate in setting up a network for rationalizing airlines business.The International Air Traffic Association expanded steadily with the development of air servicesin the world. Among other things, it drew up the general formula for tickets and transportdocuments adopted in 1927. The innovations and improvements introduced by the associationprogressively placed unique tools at the disposal of the industry. In November 1944, as the WorldWar was coming to an end, 54 states met in Chicago to lay the first foundation of the new systemthat would soon be needed by civil aviation. The Conference led to the creation of the InternationalCivil Aviation Organisation (ICAO), the international body setup by government to establishuniversal norms for the technical regulation of civil aviation. Indirectly, this conference also wasresponsible for the foundation of the International Air Transport Association – a non-governmentalbody officially set up in Havana in April 1945 – which in practice, carried on the task assumed bythe former IATA.Aims 1) To promote safe, regular and economical air transport for the benefit of the people of the world, to foster air commerce and to study the problems connected therewith; 2) To provide means for collaboration among the air transport enterprises engaged directly or indirectly in international air transport service. 3) To cooperate with the International Civil Aviation Organisation and other international organisations.IATA OrganisationThe IATA is a voluntary, non-political and democratic organisation. Membership is automaticallyopen to any operating company which has been licensed to provide scheduled air service by agovernment eligible for membership in ICAO. Airlines engaged directly in international oper-ations are active members, while domestic airlines are associate members.The IATA administration is headed by a Director General and five Assistant Directors General.The Association has two main offices, one in Montreal and the other in Geneva. RegionalTechnical Directors are based in Bangkok, Geneva, London, Nairobi, and Rio de Janeiro andRegional Directors (Special Assignments) in Singapore and Buenos Aires. IATA Traffic ServiceOffices are located in New York and Singapore. IATA’ budget is financed from the dues paid byits members, largely in proportion to the part of the total international air traffic carried by eachairline. Some IATA activities are self-supporting through charges for services rendered.A wide range of services provided by IATA includes the following: 38

 The global planning of international timetables,  The standardization of the inter-company communications and reservation system,  The international coordination of telecommunication networks and computer systems,  The single formula for tickets and airway bills,  The training of travel and freight agents,  The regulation of legal question of general concern, to develop security measures, and  The examination and solving of the problems raised by tourism, the flow of passengers and goods at the airports, and to establish procedures and technical norms.OperationsIATA member airlines are registered in some 126 nations. Their routes cross almost every countryof the world at one time or another. It is the IATA’s operational task to ensure that the aircraftutilised to carry the world passengers and goods are able to proceed with maximum safety andefficiency, under clearly defined and universally understood regulations. It is IATA’s commercialobjective to ensure that people, cargo and mail can move anywhere in the global network as easilyas though they were on a single airline within a single country. Plainly these two categories ofIATA activities are closely related in their connection with the cost of airline operation, thecarrier’s charges to the public, and the desire to keep both of these as low as possible and in keepingwith safety norms.Trade Association ActivitiesIATA Finances: The IATA Financial Committee deals with all aspects of accounting andsettlements between airlines in respect of the business they do with one another or on one another’sbehalf. It is also concerned with many of the airlines’ common problems in regard to currency andexchange, taxation, charges, insurance and statistics.An example of IATA’s financial work is the IATA Clearing House, through which tile airlinessettle monthly accounts for interline revenue transactions. It enables them to collect and pay theirworldwide debts simultaneously by single cash settlement in either dollar or convertible sterling,regardless of the number of currencies involved.The Legal Committee: The Legal Committee of IATA, composed of experts drawn from morethan 20 airlines, is concerned with all legal matters having a on international air transport. One ofits main activities is formulation of the airlines’ views in the development of internationalconventions affecting such matters as the liability of air carriers to their customers and to otherparties, the commission of offence on board aircraft, the carriage of nuclear materials and thecarriage of airmail.Technical Committee: Cooperation of the airlines in operational and technical matters ischallenged through the IATA Technical Committee, its annual 1technical conference and itsvarious global and regional working groups. IATA technical activity is founded upon fullexchange of information and experience among all the airlines.IATA has played, and continues to play, an important role in the drafting of the ICAO Standardsand Recommended Practices which form the accepted international pattern for the technical 39

regulation of civil aviation, and cooperates closely with ICAO to encourage governments toimplement them fully and keep them up-to-date. IATA works in much the same way with otherorganisations such as the International Telecommunications Union, the World MeteorologicalOrganisation and the International Organisation for Standardisation.Traffic Conferences and Activities: To unite its member airlines into a single commercialnetwork, IATA has produced a series interline agreements between them (to which many non-IATA and domestic airlines and sea carriers are parties as well) covering all phases of passenger,baggage and cargo handling, reservationThe Traffic Conference process arises from the peculiar nature of air transport. Every inch of theworld’s surface is accessible by air, and the airlines fly between most of their major cities over amaze of interrelated routes. Yet each government reserves complete control over its own shareofthe airspace and the right to determine what its air, services may charge the public. Internationalfares and rates and conditions which underline them must therefore be fixed by internationalagreements in which virtually every country has some direct or indirect concern.Tariff Coordination Activities; the negotiation of international fares and rates for submission tovarious governments arises from the special nature of air transport. Airlines operate between mostmajor cities, criss-crossing routes. For an airline any country is accessible by air. Todaygovernments in most countries of the world reserve control over their own airspace as also overwhat air carriers may charge the public for using their services. The subject of international faresand rates and the conditions which underline them are the subjects in which almost every countryhas some direct or indirect concern.Facilitation: Another service of traffic is the facilitation section. In an industry based on speed,economy and service, red—tape is a serious matter. Customs, immigration and health regulationshamper and delay the efficient transportation of passengers and cargo. Delays can add millions ofdollars to the cost of operation. With international airlines operating in almost 200 countries, andtheir operations subject to the regulation requirement of numerous public authorities in everycountry, cooperation becomes very vital. Cooperation starts with the airlines themselves. Aprogramme to cut red-tape is worked out and constantly reviewed by the IATA FacilitationAdvisory Committee. For implementation, it passes into the hands of more than 10 airlinespersonnel at the headquarters of their respectiveIATA Allied Service:IATA performs many other widely varied functions. It collects and issuesindustry statistics. It is a documentation centre and publishes on behalf of its members, issuinginternal manuals, tabulations of airlines distances, technical surveys, reports and other importantindustry information.6.2.4 International Civil Aviation Organization (ICAO)The International Civil Aviation Organisation (ICAO) is the specialized agency of the UnitedNations (UN) for civil aviation, was created by the Convention on International Civil Aviationsigned in Chicago on 7 December 1944. It codifies the principles and techniques of internationalair navigation and fosters the planning and development of international air transport to ensuresafe and orderly growth. Its headquarters are located in the Quartier International of Montreal,Quebec, Canada. 40

The ICAO Council adopts standards and recommended practices concerning air navigation, itsinfrastructure, flight inspection, prevention of unlawful interference, and facilitation of border-crossing procedures for international civil aviation. ICAO defines the protocols for air accidentinvestigation followed by transport safety authorities in countries signatory to the Convention onInternational Civil Aviation (Chicago Convention).The Air Navigation Commission (ANC) is the technical body within ICAO. The Commission iscomposed of 19 Commissioners, nominated by the ICAO’s contracting states, and appointed bythe ICAO Council.[2] Commissioners serve as independent experts, who although nominated bytheir states, do not serve as state or political representatives.The development of Aviation Standards and Recommended Practices is done under the directionof the ANC through the formal process of ICAO Panels. Once approved by the Commission,standards are sent to the Council, the political body of ICAO, for consultation and coordinationwith the Member States before final adoption.The forerunner to ICAO was the International Commission for Air Navigation (ICAN). It heldits first convention in 1903 in Berlin, Germany but no agreements were reached among the eightcountries that attended. At the second convention in 1906, also held in Berlin, 27 countriesattended. The third convention, held in London in 1912allocated the first radio call signs for useby aircraft. ICAN continued to operate until 1945.Fifty-two countries signed the Convention onInternational Civil Aviation, also known as the Chicago Convention, in Chicago, Illinois, on 7December 1944. Under its terms, a Provisional International Civil Aviation Organization(PICAO) was to be established, to be replaced in turn by a permanent organization when 26countries ratified the convention. Accordingly, PICAO began operating on 6 June 1945, replacingICAN. The 26th country ratified the Convention on 5 March 1947 and, consequently PICAO wasdisestablished on 4 April 1947 and replaced by ICAO, which began operations the same day. InOctober 1947, ICAO became an agency of the United Nations linked to the United NationsEconomic and Social Council (ECOSOC)MembershipAs of November 2011, there are 191 International Civil Aviation Organization members,consisting of 190 of the 193 UN members (all but Dominica, Liechtenstein, and Tuvalu), plus theCook Islands.Governing CouncilThe Governing Council is elected every 3 years and consists of 36 members divided into 3categories. The present Council was elected on October 1, 2013 at the 38th Assembly of ICAO atMontreal. The Structure of present Council is as follows:i. Part I – (States of chief importance in air transport) – Australia, Brazil, Canada, China, France,Germany, Italy, Japan, Russian Federation, United Kingdom and the United States. All of themhave been re-elected.ii. Part II – (States which make the largest contribution to the provision of facilities forinternational civil air navigation) – Argentina, Egypt, India, Mexico, Nigeria, Norway, Portugal, 41

Saudi Arabia, Singapore, South Africa, Spain and Venezuela. Except Norway, Portugal andVenezuela, all others have been re-elected.iii. Part III– (States ensuring geographic representation)- Bolivia, Burkina Faso, Cameroon,Chile, Dominican Republic, Kenya, Libya, Malaysia, Nicaragua, Poland, Republic of Korea,United Arab Emirates and United Republic of Tanzania. Bolivia, Chile, Dominican Republic,Kenya, Libya, Nicaragua, Poland and United Republic of Tanzania have been elected for the firsttime.StandardsICAO also standardizes certain functions for use in the airline industry, such as the AeronauticalMessage Handling System (AMHS), making it a standards organization. Each country should havean accessible Aeronautical Information Publication (AIP), based on standards defined by ICAO,containing information essential to air navigation. Countries are required to update their AIPmanuals every 28 days and so provide definitive regulations, procedures and information for eachcountry about airspace and aerodromes. ICAO’s standards also dictate that temporary hazards toaircraft are regularly published using NOTAMs.ICAO defines an International Standard Atmosphere (also known as ICAO Standard Atmosphere),a model of the standard variation of pressure, temperature, density, and viscosity with altitude inthe Earth’s atmosphere. This is useful in calibrating instruments and designing aircraft.ICAO standardizes machine-readable passports worldwide. Such passports have an area wheresome of the information otherwise written in textual form is written as strings of alphanumericcharacters, printed in a manner suitable for optical character recognition.This enables border controllers and other law enforcement agents to process such passportsquickly, without having to input the information manually into a computer. ICAO publishes Doc9303 Machine Readable Travel Documents, the technical standard for machine-readable passports.A more recent standard is for biometric passports. These contain biometrics to authenticate theidentity of travellers. The passport’s critical information is stored on a tiny RFID computer chip,much like information stored on smartcards. Like some smartcards, the passport book design callsfor an embedded contactless chip that is able to hold digital signature data to ensure the integrityof the passport and the biometric data.ICAO is active in infrastructure management, including Communication, Navigation, Surveillance/ Air Traffic Management (CNS/ATM) systems, which employ digital technologies (like satellitesystems with various levels of automation) in order to maintain a seamless global air trafficmanagement systemAims and Objectives of ICAOIts aims and objectives are to develop the principles and techniques of international air travelnavigation and to foster the planning development of international air transport.It also sets international standards and regulations necessary for safe, regular, efficient andeconomical air transport, and serves as the medium for co-operation in all fields of civil aviationamong its 187 Contracting States. 42

Another of ICAO’s functions is to facilitate the adoption of international air law instruments andto promote their general acceptance. ICAO also conducts workshops in various regions to provideStates with information and advice on its activities and to facilitate exchange of information andviews. In addition, ICAO also provides assistance to States to improve their aviation securityfacilities and procedures.In recent years, ICAO has undertaken extensive work in areas like reporting aircraft accident andincident data, and automation of air traffic services. Among ICAO’s more significantachievements has been the development of a satellite-based concept to meet the futurecommunications, navigation, surveillance and air traffic management needs of civil aviation.The ICAO is made up of an Assembly, a Council of limited membership with various subordinatebodies and a Secretariat. The Assembly, the sovereign body of ICAO comprising representativesfrom all Contracting States, meets at least once in three years to discuss civil aviation issues in thetechnical, economic, legal and technical co-operation fields. The Council, which is the governingbody and comprises 33 Contracting States, gives continuing direction to the work of ICAO. Oneof its roles is to adopt International Standards and Recommended Practices and to incorporatethese as Annexes to the Convention on International Civil Aviation. The Council is supported bythe Air Navigation Commission (technical matters), the Air Transport Committee (economicmatters), and the Committee on Joint Support of Air Navigation Services and the FinanceCommittee. The Secretariat, headed by a Secretary General, is divided into five main divisions -the Air Navigation Bureau, the Air Transport Bureau, the Technical Co-operation Bureau, theLegal Bureau and the Bureau of Administration and Services.Aim of ICAOICAO works in close co-operation with other members of the UN family such as the WorldMeteorological Organisation (WMO), the International Telecommunication Union (ITU) and theInternational Maritime Organisation (IMO). Non-governmental organisations such as the AirportsCouncil International (ACI), the International Air Transport Association (IATA) and theInternational Federation of Air Line Pilots’ Associations (IFALPA) also participate in ICAO’swork. The main aim of ICAO include  Ensure the safe and orderly growth of international civil aviation throughout the world  Promote safety of flight in international air navigation. Some other aims include Standardization - the establishment of International Standards, Recommended Practices and Procedures covering licensing of personnel, rules of the air, aircraft operations, airworthiness, aeronautical telecommunications, air traffic services, accident investigation, aircraft noise and emission levels, security and safe transport of dangerous goods. After a standard is formally adopted, each of the ICAO ‘contracting states’ implements it within their territories.  CNS/ATM - the development of a satellite-based system concept to meet future communications, navigation surveillance/air traffic management (CNS/ATM) needs of civil aviation. 43

 Regional planning - for the purposes of the ICAO, the globe is divided into 9 geographical regions which are treated individually for ‘planning the provision of air navigation facilities and services required on the ground’. ICAO regional meetings are held periodically. Facilitation - the reduction of procedural formalities which may add extra time to a passenger’s journey and the provision of adequate air terminal buildings. Economics - air services to be established on the basis of equality and opportunity and operated soundly and economically. Technical co-operation for development - the promotion of civil aviation in developing countries which includes the provision of assistance to states in order to improve their aviation security facilities and procedures. This has involved the creation or assistance of many large civil aviation training centres. Law - development of a code of international air law governing certain issues. 44

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