The Tourism Policy

ANNALS Vol.

OF TOURISM

III,

No.

RESEARCH

5, May/August

1976

THE TOURISM POLICY Professor Libera

Albert0

Sassa’

Universrta’

Degli Studi

lnternarionale

Sociali

Pro Deo

Italy

Rome,

ABSTRACT

Sessa, Alberto, Research, article

Vol.

defines

III,

“The

No.

Tourism

and explores

the policy’s

levels of development main

guidelines.

tourism

policy

of facilities, policy theory

in terms

countries,

The article

then applies of Italy,

the demand policy

on them,

The both

paper

of Tourism -- This

policy.

It con-

to institutions before

setting

and forth

this understanding emphasizing

and the effect

concludes

as a link

and as an example

4nnds

pp. 234-247

of the development

aims and its relation in various

to the example

on tourism.

of tourism

1976,

the need for tourism

siders the design of such a policy of tourism,

Policy,”

5, May/August

between

of the world’s

of

the supply

of government

by affirming economic governance

the value practice

and

by economic

ideas.

*Professor Turismo. research (Vol.

234

Ill.

Sessa is the Director

He is also .?nnnls work No.

Associate

and publications 1, pp.

of the Unrversrty’s Editor

IS publrshed

Corso di Specializzazione

for Economics.

A brief

in the September/October

summary

in of his

issue of .4rrn&.

12-13). ANNALS

OF TOURISM

RESEARCH,

May/Aug

‘76

ALBERT0

SESSA

Sessa, Alberto, “La Politique du tourisme,” Annals of Tourism Vol. III, No. 5, mai/aoCt 1976, pp. 234-247 -- Cet article definit et discute la nicessite’d’une politique pour le tourisme. II

Research,

traite de la formation d’une telle politique a’ I’igard du diveloppement du tourism@, des objectifs de la politique, et de son rapport aux institutions et aux nivaux de d&reloppement &onomique

dans de

divers pays, avant de proposer quelques principes majeurs. Ensuite, I’auteur applique cette conception de la politique du tourisme au cas de I’ltalie, en soulignant la manque de commod&s, leur &ate surchar+, et I’effet de la politique du gouvernement sur le tourisme. L’article se termine par une affirmation de la valeur de la politique du tourisme en tant que lien entre la pratique &onomique

et la the’orie

et comme exemple de I’organisation du monde par des consid&ations &onomiques.

INTRODUCTION In recent years the term tourism policy

has been increasingly used - though

often in different senses -- by government authorities, politicians, businessmen and tourist operators throughout the world.

Because of the scope it has acquired and

its many significant economic, social and cultural repercussions, tourism, like any other activity that affects a large number of sectors, has become an integral part of the policy of organized society.

The term, therefore, is to be understood in the

sense of a concrete policy, i.e., as the action of various decisions-making bodies calculated to achieve specific objectives. Such a vital activity comes within the scope of national policy or, to be more precise, the policy of the various decision-making bodies existing under particular economic and social systems. Tourism policy, however, may not only be viewed as concrete action designed to promote the development of tourism as a valuable contribution to the overall progress of the nation: it may also be approached from a scientific point of view, completely distinct from the first and with different implications. In other words, just as economics includes a branch devoted to the less abstract study of certain objectives for guiding concrete action, which is usually called economic polic! in the scientific sense of term, so should the analysis of tourist economy include an examination tific sense.

of tourism

economic

policy

in the scien-

Taking the term tourism policy in that sense, eliminates any ambiguity or confusion in relation to concrete policy. One can then objectively consider the various policies that an expert on tourism can work out from a given degree of abstraction; and these policies subsequently may be implemented autonomously ANNALS

OF TOURISM

RESEARCH,

May/Au9 ‘76

235

THE

by the public of studies existing

authorities

TOURISM

or private

in tourism

This distinction

bodies.

on the several problems

studies

POLICY

of tourism

economy

that

policy;

will

facilitate

this would

have contributed

a number

supplement

the

to a systematic

approach

of tourism.

TOURISM

ECONOMIC

Before

POLICY

dealing

with

sense, it is necessary

the notion

to define

itself is now going through are being reconsidered, that

it is impossible The

five years 3.

toward

to mean

the study

economic

relations.

government agents

purpose

gap has been filled. in the introduction on economic

bution

to concrete

one claiming

treatises

defined

different

character,

however, concide

most significant So viewed,

economic

This distinguishes

jectives. in that

it is less abstract

examination

policy

and concrete of hypothetical

236

of this author, be understood.

action.

history.

primary

it provides

re-

as a critical

contri-

according

the

to more

and abstract Reports

they

that

policy

may

have a

-- even if they deal with

and

-- is to single out the

analysis

by another

to establish

future

and mere economic

ob-

history

its PY post

and yet justifies

Italian

economist,

intermediate

by him,

may

the notion

of its study

ANNALS

Gaffe’, who

between

it uses analysis

be carried

it is in this sense that subject

in order

in general

for the future.

As conceived

The proper

than

the

significantly

of past events,

purpose

the problems

economics

that

however,

rather

conditions.

pure economic

objectives

economic

now,

In this way,

on economic

uses the analysis

has been expanded

number opinion

their with

as a stage in the investigation

analysis

either

objectivity,

or reports

of future

policy

than

regarded

of the past or present

it from

by the indications

This theory economic

should

features

by other

Del Vecchio

in

into

2.

economic

when

inquiry

investigation

The first are theoretical

in time

are based on observations

of economic

and the other

reports

in

taken

intervention

The tendency

or as an account

the second

as economic

or nearly

action

criteria.

was generally

to a systematic

economist

are usually

content

on economics,

be described concide

policy

critical

or less exactly

Italian

economic

policy

in the economy.

of his last book

remarked

still be valid

by the changing

the results of action

intervention

As the

will

of government

and private.

Economics as a whole

Galbraith

theories

is affected

it was limited

the structure

in the scientific

policy.

Kenneth

and aspects

public

of government

marked

John

policy

neglected

of research

existing

Studies

words,

policy

and objectives

so long ago economic

and implicitly

fact

that

forms

and international,

the subject

its methods

any of the current

Not

In other

economic

here by ~ronomic

of economic

of the various

action

the historical

in which

to such an extent

economics.

-- national

is to make

a period

is meant

to say whether very

attitudes

of tourism

what

out

of tourism

sees

economic

for formulating 1 In the

a

.

in practice

is the actual

OF TOURISM

abstract

economic

policy

conditions

RESEARCH,

May/Aug

of a

‘76

ALBERT0

SESSA

mixed market economy in which, side by side with the government authorities, These are not only the national and inter-

there are other decision-making centres.

national, public and private tourist operators, but also the family units of consumers who, through their demand for the tourism product, determine the application of a specific policy.

Consequently, a study of the appropriate tourism policy

for a specific environment and a particular nation, if it is to meet that country’s requirements, must necessarily take into account all of these decision-making centers. TOURISM

POLICY

It is clear from the foregoing that, from a scientific point of view, the terms tourism

policy

and tourism

economic

policy

are synonymous.

policy on monetary matters, public works, transportation

Just as a country’s

or domestic trade forms

part of the overall economic policy, so does its tourism policy. activity, it cannot be ignored in a nation’s economic policy.

As a basic economic

Tourism policy, in the

scientific sense of the term, must always and necessarily be economic. Although tourism policy, in this sense, belongs to the field of economics, the phenomenon of tourism will always be a complex network into which many factors enter.

The social and cultural factors have as much impact on tourism as the econom-

ic factor. They cannot be overlooked in a study of tourism economic policy in the scientific sense, i.e., tourism policy. On the contrary, special attention must be paid to their development because of the benefits they may bring to the national and international economy. A tourism policy stressing the social aspect is one of the chief means of promoting domestic and foreign demand since such a policy has decisive effects. on the economy.

The same holds true for a tourism policy that, by stressing the cultural

aspect, helps to develop the tourism activity of a nation. Indeed, the economic importance of such a policy and its impact on the nation’s progress come within the scope of UNESCO’s activities to exploit the economic potential of its special programs for the protection and development of the cultural heritage of various nations. Tourism activity, since it is an aggregate of a number of productive activities and services, is strictly interdependent

with all the nation’s various economic sectors,

and its growth is to the benefit of the national economy as a whole. This fact, which points out the special structure that characterizes tourism economic activity, must be taken into account by the tourism policy.

The cultural and social factors

must also be taken into account since tourism policy, as it has been defined here, means a comprehensive policy. In view of its economic structure and its cultural and social aspects, tourist policy must necessarily be gIobnl in scope. At the same time, the scientific notion of tourism policy must imply a rational choice of the objectives to be achieved for the development of the sector,

ANNALS

OF TOURISM

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237

THE

TOURISM

POLICY

bearing in mind the nation’s environmental

situation, the general economic policy

followed, and all its other components. A scientific tourism policy is necessarily rational and the objectives it sets must lead to the creation of instruments that can be applied in practice. To sum up, if tourism policy is understood as a necessary intermediate which numerous hypothetical

stage in

objectives are worked out that can serve as guidelines

for the concrete action ultimately

decided upon (though, of course, the concrete

situations will inevitably be more complex) such a policy must be rational. $obaf economic.

and

The other arguments usually advanced for considering tourist policy

rational, global or economic become superfluous, since it now has all of these characteristics. THE NEED

FOR A PUBLIC

TOURISM

Tourism is an eminently

POLICY

public activity on account of its very economic struc-

ture which, as such, can only be regulated and coordinated

by the public authorities.

The government’s tourism policy will differ in forms and means in relation both to the form of political economy that prevails in the country and to the degree of development reached.

At a time in which government action in favor of the various

national productive sectors is becoming more and more pronounced, such action can certainly not be ruled out in this sector which, on account of the problems arising and of the dimensions reached, cannot in any circumstances be left to the private enterprise alone. The success of tourism growth can only be assured if there is substantial encouragement from the public authorities. But this should mean that, if the notion of tourism policy indicated is accepted, the same examination, even though expressly limited to public authorities, will also reveal the fundamental importance of the action of other decision-making centers in the country.

For those countries in which, on

account of their politicaleconomic structure, the concentration of economic activity in the public authorities alone has already occurred, obviously the approach indicated here for the economic policy of tourism development will be the only one possible. Therefore, in both assumptions (whether focused on government or other decision-making centers), a study of tourism policy will have to start with that of the public authorities. However, it must be stressed that government intervention has always been of decisive importance for the development of tourism.

Indeed,

the economic features of tourism demonstrate the necessity to adopt a government tourism policy as a primary factor for growth. A DYNAMIC

PUBLIC

POLICY

FOR TOURISM

DEVELOPMENT

The setting up of a tourism superstructure in western countries was mostly the result of private enterprise between the end of the last century and the first world

238

ANNALS

OF TOURISM

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war.

SESSA

On the other hand, this passive policy, which originated mainly from lack of

knowledge of the problems involved in tourism, has led to a deterioration

of tourism

resources in many developed countries, and this has exerted an unfavorable influence on the sector’s development. But, even going on to the phase of action for safeguarding the hotel industry, which occurred for the first time in the second stage of tourism development, corresponding to the interval betwen the two world wars, the lack of a global and d_vnamic tourism policy (still lacking in many developed countries) has led to very serious imbalances.

This shortcoming has brought about the excessive territorial

and temporal concentrations which have occasioned serious harm not only to the tourism resources of these countries, i.e., to their natural and cultural heritage, but also to the health of their citizens who, through tourist activities, would be invigorated. The pattern of the public authorities’ tourism policy has become today necessarily dynamic.

The solely governmental problems within the sector and within the

limits of the action itself, have thus been conquered.

Today, the new context im-

Poses a tourism development policy conceived in a harmonious and coordinated way and not mere fragmentary action of the state. Accordingly, beyond the degree of tourism and economic development reached by a nation, and beyond its politicaleconomic regime, tourism policy, in the dynamic sense, is not only valuable but a necessitv for all countries. The features of this policy must, then, be given in greater detail.

In this dyna-

mic context, the different actions of government intervention in faOor of tourist development in the sectoral or fragmentary sense, appear to belong to the irredeemable past.

In other words, the disunity occurring in the actions taken in favor of

demand and supply are gone. These divisions have solely an illustrative value, and in this limited meaning they will be used here.

They, however, cannot represent the

“last word” in state policy towards tourism. The development of tourism imposes the adoption of a global de\ielopment policy, which provides for and coordinates all these government actions within the framework

of a hastened growth of the sector for general purposes and thus - and

this is much more important

- of the harmonious growth of nations.

The dynamic

context of this policy thus derives from the union, and from the direction towards a common end clearly defined beforehand, of these fragmentary actions. THE AIMS OF PUBLIC

TOURISM

POLICY

The public tourism policy is determined by the twofold need to ensure that the tourist is satisfied and to make sure that the tourism development takes place smoothly and in a well-balanced form within the context of the national economy.

ANNALS OF TOURISM RESEARCH, MavlAug ‘76

239

THE

TOURISM

POLICY

In other words, the need to develop tourism to satisfy primary needs for the individual citizen’s health in an industrialized country has been deemed the main justification for the public authorities’ action. The tourist’s satisfaction will be, without

any shadow of doubt, the fundamental

motive even in reference to inter-

But the objective of this policy will also be represented - and

national tourism.

this will be of particular value for countries that have not yet achieved a high level of industrialization contribute

- by the development of a new productive activity that can

to the country’s rapid and harmonious growth.

From this second statement it emerges that the main aim of tourism policy will also be that of attaining a certain rate of growth in tourism itself. The tourism policy, which will tend to attain the twofold primary objective specified, will be obviously diverse and graduated in relation to the countries’ institutional to the level of development attained. the coordination

and harmonization

set-up and

However, it will tend everywhere to achieve of the diverse interventions in terms of single

context and to aim for clearly determined objectives.

This action will be all the

more indispensable in the third world countries where the lack of private enterprise is so much more serious, or for those countries with a collectivist regime, in which the state is the sole economic agent. THE

INSTITUTIONAL

CONTEXT

The type of tourism policy is directly dependent on the country’s institutional framework.

At present, the existence of an absolutely free market economy is to be

considered as only theoretically

possible, apart from the fact that in reality this

ideal, and idealized, regime has never existed in the economic history of mankind, since the classical conception of this structure was itself only theoretical.

The two

regimes actually present are a centralized collectivist system and a mixed market economy, where the active intervention and intensities.

of the state can occur to different extents

In the case of a centralized collectivist regime, the economy is

wholly directed and regulated by a central authority taking account of the market.

which exerts its power without

It is, nevertheless, necessary to point out that tourism suffers much more than other productive sectors from excessive bureaucratic concentration, as some experiments of partial “reprivatization” .In these countries also show (e.g., in Yugoslavia). In regimes with a mixed market economy, the public authorities although basing themselves on, and thus respecting, private property and free enterprise, intervene in a more or less active way to eliminate or reduce possible imbalances in the general interest of the nation. In these countries, the government’s intervention will be limited to planning and, consequently, to encouragement, coordination and control of the tourism superstructures; however the latter will be entrusted to private enterprise. Public intervention

240

will, then, be obligatory for setting up the tourism infra-

ANNALS

OF TOURISM

RESEARCH,

MaylAug

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ALBERT0

structure.

The different

institutional

SESSA

pattern will lead to an obligatory planning of

tourism development in the collectivist system and a mainly indicative planning in the mixed economic system.

It is, in fact, logical that in this latter case the tour-

ism plan must take into account the complex and “pluricentric”

structure of the

nation in the presence of various decision-making centres in the system. LEVEL

OF DEVELOPMENT Another essential factor in the public authorities’ tourism policy is that con-

nected with the degree of tourism development, and more broadly, the economic and social development, attained by a nation. proceed with a wholesale differentiation developed countries.

In this case, it will be necessary to touristically developed and less

between

Within these two categories, then, it will be possible to make

another classification between touristically

developed countries that, from an econom-

ic and social viewpoint, belong to the third world, and countries that, being industrialized, are receiptors rather than genern/ors

of industrial tourism (e.g., Italy).

The tourism development reached by a nation obviously influences to a preponderant extent the determination of a development policy in the sector. In a touristically

developed country, there will normally be the problem of avoiding

excessive spatial concentrations around the already existing development poles. touristically

In a

developed country there will, moreover, be the problem of fully exploit-

ing the productive capacity of the already existing tourism industry. This problem includes diversifying and requalifying the supply, as welf as restraining speculation of various kinds that can occasion irreparable damage to the country’s natural and artistic resources. However, in touristically less developed countries, the problems are different and much vaster. There will be, in fact, a need to create at the outset the whole extensive system of infrastructure that is essential for tourism and without which tourism itself is impossible. MAIN

GUIDELINES Examination

OF TOURISM

POLICY

of the last two paragraphs now enables the guidelines of tourism

policy to be traced

In the first place, it will be necessary to adopt a long-range

policy of physical planning for localizing the tourism poles through which tourism growth takes practical slrdpe FOI a tourrsttcdrry less davleoped country, once the tourism development pole has been identified, it will be necessary to trace, within the framework of a rational policy of physical planning, an adequate development policy of basic infrastructue and, in particular, a suitable transportation policy which, together with foodstuffs, will make up a large part of tourism consumption. In a touristically already excessive ANNALS

developed nation, on the basis of experience acquired, there are

territorial

OF TOURISM

concentrations

RESEARCH,

May/Aug

that ‘76

have given rise to a series of serious

241

THE

problems.

In these countries,

eliminates

or at least alleviates

these very countries, an uneconomic tourism capacity, tourism

ing of tourism

less developed

investments.

the purchase

today

tern and the level of growth

The advantage

which

CASE

retical, tourism

OF ITALIAN

of the notion it is worth policy.

the criteria

industry

is taken

establishing

firming

the importance

Project

lists a number

of obstacles

242

development

is shown

of facilities

This pat-

within

by a study made as far

brought

The out-

paragraphs,

seemed

to light continued

Italian

government

and to demonstrate

otherwise

to

policy.

is the initial

as an essential hindering

tourists

Plan which,

during

with

ANNALS

policy.

sector of the Italian

certain

Programme

up by the Minon expira-

and territorial

to tourism

its development,

industry,

drawn

for approval.

for the modernization is devoted

imtheo-

by Italian

Economic

outline

Five-Year

to Parliament

paragraph

of tourists

provided

for the National

for the future

the practical

might appear to be purely

on the example

report

This report

of the hotel

for receiving

etc.

planning

in the following

to adjust to the changes that have occurred

a poor utilization

or those arising

POLICY

guidelines

of tourism

to an excessive concentration

tribution

expansion,

of

to fore-

was in full crisis a few years later, a crisis that has

for a moment

a particular

devoid

market,

The shortcomings

one, is to be submitted

of production,

are structurally

state in favor of the sector.

up briefly

80. the preliminary as a basis.

once

for the financ-

institutional

described

above, which

to dwell

countries),

to provide

or programming.

this thesis more clearly

defined

while

In the chapter

quently

develop-

the different

tourism

of the Italian

TOURISM

f’roject

tion of the current

supply

of a new

on the national

outside

through

istry for the Budget and Programming

tourism

in tourism

general planning

policy

third world

countries

its peak, still in the absence of an adequate

for 1971-1975

bution

implicit

will be summed

tourism

In order to illustrate portance

reached,

negative and pessimistic.

exist and the Italian

THE

the opening and balanced

too, it will then be necessary

and food products

of adopting

on the tourism

come of this study,

now reached

Public

productive

in this sector requires a high capital

world

more and more,

of the nations’

(usually

it will be necessary

of third

tensions

of agricultural

is being applied

then clearly

countries

For these countries,

stall the risks of inflationary

back as 1966

and thus leads to

of the existing

season and with

In fact, investment

the economies

rate of capital.

the framework

in

tourism.

whereas

an adequate

exploitation

that

Furthermore,

to high prices.

will be the start of a rational

pole has been indentified,

ratio,

and, therefore,

of the tourism

poles which

For the touristically a development

policy

facilities

a policy

to implement

characteristics.

covers a very short period

of the tourist

with the prolongation

ment of national

from

these unfavourable

must, above all, aim at a fuller

development

output

POLICY

then, there will be the need

the concentration

running

policy

TOURISM

namely

congestion

OF TOURISM

reafthe

(a) the failure leading

of

inter ah.

of the year and conse-

and (b) an unsound a resultant

economy,

in demand,

periods

distri-

After

geographical

dis-

of accommoda-

RESEARCH,

MaylAug

‘76

ALBERT0

tions in certain

localities,

the harmful

The two maln guidelines

these considerations.

effects

SESSA

of which

are obvious.

for the tourism policy of the next few years are based on

The first calls for a reassessment and a diversification of tourism

demand in order to adapt it to the characteristics of modern tourism.

The second recom-

mends that the interests of tourism should be taken into account in any measures adopted in connection with the environment and physical planning. In order to achieve the first objective, the Project points out that it will be necessary to modernize and develop accommodations, particularly those establishments in the middle category and establishments falling outside the category of hotels: it stressesthe usefulness of opening the new tourism areas of Mezzopiorno.

the implementation

of a policy

of competitive prices, and intensified training for tourism operators and personnel. In order to achieve the second objective, the Project stresses that tourism policy should be linked with the policies for physical planning, soil conservation and its systematic use, the control of air and water pollution, the preservation and development of the nation’s historical and cultural heritage, the protection of scenic areas, the restoration of historical sites and centers, and the reorganization of urban systems of transportation and communications. It should be borne in mind that the Project is only a preliminary report and consequently the tourism policy outlined by it is not as definite or as detailed as would be desirable.

Nevertheless it supplies the general guidelines on which the tourism policy

during the years ahead, making allowance for the necessary additions and clarifications, is to be based. It should also be pointed out that the tourism policy defined by the Project already belongs to the realm of applied research, which establishes the actural importance of the relations that exist in specific situations and supplies the quantitative that enable the authorities and the various decision-making bodies to adopt concrete solutions. In the light of the situation of tourism in Italy, the method of determining a scientific tourism policy for the coming decade is briefly described below: 1. SUPPLY. Owing largely to the efforts of the private sector, the hotel industry in Italy hg F,dde considerable strides. According to Organization for Economic Cooperation and Development (OECD) statistics, Italy has after the United States the highest supplenrentary accommodation

capacity in the world, with 1,503,120

available beds.

In 1967, it held the same position with respect to the number of hotel beds - 1,173,800. Not only quantity improved between 1949 and 1967 but also quality, as shown by the increase in the number of bathrooms, which amounted to 868 per cent during that period. The analysis will be more complete, however, if the relation between the increase in the number of beds for the various categoreis of hotels and that in the number of nights is considered. A comparison of the two rates shows that for the middle category-second and third-class hotels and second-class pensions-the number of beds has increased faster than

ANNALS

OF TOURISM

RESEARCH,

MavlAug

‘76

243

THE TOURISM POLICY

the number of nights. To round out the picture, the distribution of national accommodation capacity by regions must also be taken into account. Without going into details, it may be said that, in relation to national capacity as a whole, that of the southern and central regions, with the exception of the Alvuzzi and ,%rdinia, has falled since the end of the war while that of Northern Italy, except f?edmont,

Lombardy.

Liprin

and Tummy.

A comparison should also be made in the regional distribution

has risen.

between the increase

in the number of beds and that in the number of nights. The number of beds has risen at a faster rate than the number of nights throughout the central and southern regions, except the Abruzzi,

whereas the opposite has occurred in the North, except Liguria.

It may be concluded, therefore, (a) that the Italian tourism industry, spurred by the private sector, has increased the number of establishments and beds, (b) that the occupancy rate in the middle category has been decreasing and has remained rather low in all categories, reaching only 35.1 percent in 1967, and (c) that in the regional distribution a concentration of establishments has occurred in the North, with the result that there has been a proportionally

lower increase in the number of beds in the South

and, despite that, a falling occupancy rate. 2.

DEMAND. Domestic and foreign demand have developed differently

war period.

during the post-

Except for a very slight decline in the number of arrivals and a levelling off

of stays in 1965, national demand has increased at a steady rate. Foreign demand grew faster than domestic demand up to 1962 but afterwards slower, except in 1965 and 1966. Another significant development in recent years is the shifting relation between the expenditure of Italian tourists abroad and domestic receipts from tourism. With a few exceptions, up to 1961 receipts grew at a higher annual rate than expenditure; from 1962 to 1968, with the sole exception of 1965, the proportional increase in expenditure clearly exceeded the increase in receipts. 3.

GOVERNMENT TOURISF! POLICY. What follows is, generally speaking, the results

yielded by an analysis of the Italian tourism economy based on statistics. A few remarks, however, must also be made about the part played by the public authorities, i.e., the achrevements of the government’s tourism policy. Up to 1966, the government investment in the hotel industry amounted to 21,215 million lire (1966: $1.00=625 lire), which shows that the extraordinary development of tourism is almost entirely due to private initiative stimulated by growing domestic and foreign demand.

In 1966, three laws were passed allocating over 100,000

million lire

for the creation of new establishments in areas where hotel concentration is slight and for the modernization

and improvement of facilities existing in highly developed areas.

It can therefore be said that in 1966 the financial efforts and the objectives of the government’s policy to improve the hotel industry were adjusted to needs. 244

ANNALS OF TOURISM RESEARCH. Mav/Auq ‘76

ALBERT0

SESSA

The policy regarding demand has not kept pace with the development of the Italian hotel industry.

A social tourism policy, which would be one of the main ways of stimulat-

ing increased national demand, has been almost completely lacking. Even in 1969, expenditure for advertising was equal to only 2.25 per cent of the total amount spent by foreigners in Italy and accounted for only 1 .18% of the government’s budget, though advertising expenditure in other sectors normally amounts to between 10 and 30 per cent of total production costs, according to the type of product sold and the size of the enterprise.

Nor is there any policy to encourage the staggering of holidays of Italian

nationals, despite the fact that in 1965 the concentration in July and August was 83.2 per cent. It is clear from this brief picture that experts formulating an Italian tourism policy for the 1970’s take into account a wide range of hypothetical objectives based on the environmental conditions of the country from the social, economic and political standpoints (though, of course. the actural situation will inevitably prove to be more complex). These policies will by their implementation make it possible to overcome the obstacles to the development of tourism.

Thus, the policy makers will face two crucial problems:

(a) the unequal distribution of accommodations between central and southern Italy and northern Italy and (b) the need for a general increase in the occupancy rate in the hotel industry. The first problem can be solved through government action that differentiates between the various regions for the development of tourism and, as under the laws mentioned earler, gives priority to the establishment of new facilities in the touristically least developed areas while being limited to the improvement of those in the more developed areas. This will entail the simultaneous implementation of adequate policies for town-planning and the protection of the country’s natural beauty spots and cultural riches, for setting up a sound infrastructure in the least developed areas, for eliminating the harmful effects of an excessive concentration of tourism enterprises in certain regions and, above all, for coordinating all these measures with appropriate action to stimulate national and international demand. The rate of hotel occupancy can be increased by means of a policy designed to stimulate demand.

Such a policy must take into account the.need to cope with the problem of

staggering holidays, the need to devise ways and means of developing soical tourism, and the need to use the various new marketing methods for promoting the sale of tourist product at home and abroad. The various obstacles cannot be overcome unless action is taken simultaneously with respect to supply and with respect to demand. Project 80 , however, makes no provision for action in connection with demand and merely outlines the other measures mentioned above. From the foregoing it follows that tourism policy, as an integral part of a nation’s overall economic policy, must be coordinated with the policies of all the other sectors directly or indirectly related to tourism.

Poreover, the progress of tourism is possible

only in the context of the country’s progress as a whole, although, as a sector of pri-

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THE

TOURISM

POLICY

mary importance, it requires an ad hoc policy of its own. It also follows that it would be a mistake to consider tourism policy merely as the study of government action, though such action is doubtless of vital importance. Since the Second World War, Italian tourism has made great headway owing primarily to the efforts of the private tourist industry, which has set up first rate facilities in order to meet the growing demand from family units, whereas the efforts of the government have been inadequate, leading to the deficiencies mentioned earlier. This points to the usefulness of a scientific tourism policy, as that notion has been defined here, for a mixed economy such as exists in Italy where, side by side with the official decison-making bodies, there are those whose existence is due to private tourism operators and the family units that also determine, through demand, the adoption of a specific tourism policy. CONCLUSIONS:

THE VALUE

OF A SCIENTIFIC

I\‘OTION

OF TOURISM

POLICY

The value of a scientific notion of tourism policy therefore lies in the fact that it establishes a bridge between abstract tourism economic analysis and concrete action. This is an increasingly recognized need in economics.

Some authors, such as Mrs.

Robinson, point out that one of the habitual shortcomings in current discussions on economics is the tendency to draw immediate references for a practical policy from a highly abstract theory without going through the intermediate state necessary for determining to what extent the premises of the theory correspond to the actual facts 5. Many problems now have to be solved by national and international tourism authoities including, inter dia. the item of tourism in the balance of payments (i.e., the validity of a deficit due solely to considering the tourism balance from the standpoint of accounting), the progress of the tourism economic activity in the developing countries, a more balanced structure of the world tourism market, the future of the tourist activity in the light of foreseeable changes in demand, etc. In other words, a scientific tourism policy stresses the need to approach every prottlem in a rational and comprehensive manner, converting the hypothetical

objectives into

practical action on the basis of factual analysis, i.e., using the analytical approach of thephenomena as a guideline for the action. This does not of course mean that the objectives so determined must authomatically be accepted by those responsible for the public and private sectors or by those who must ultimately decide on the concrete action for their implementation. Such a policy lays down a number of objectives to be achieved, objectives which are based on established economic facts. Economic analysis, in other words, is the science of means, whereas tourism economic policy becomes the science of ends. To accept this scheme is to open up a vast field of research for international organizations concerned with tourism. Such organizations could carry out a number of in-

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quiries with a view to defining a wide range of objectives based on an analysis of a nation’s economic situation or the world tourism market.

Once the intermediate stage of theo-

retical abstraction has been completed, it will be up to those who are responsible for the public or private sector to take concrete action, i.e., to implement the policy. As regards the value of putting these objectives into practice, it is worth while recalling the following passage of Keynes: The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist.

Madmen in authority, who

hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back. I am sure that the power of vested interests is vastly exaggerated compared with the graudal encroachent of ideas. g. Apart from the characteristic polemical tone of the great economist, it would seem that Keynes was right: for the world in the last analysis, is governed by the force of ideas. It is hardly questionable that the social sciences have transformed the social environment in which man lives. The scientific study of tourism policy aims at reaffirming the need of studying the various problems from a rational point of view, beyond any particular political considerations; it stressesthe need for a rational choice of objectives to be achieved in the light of an impartial analysis of a given situation; and it emphasizes the fact that the study of tourism and the science derived there from go hand in hand, inseparable in their unity and their various degrees of theoretical abstraction. cl BIBLIOGRAPHY

1.

Caffi, F., Politica economica, Boringhieri Editore, Torino

2.

Del Vecchio G., Politica

3.

Galbraith J.K., “L’unico the parlava tutti i giorni con Hitler,” published in

4.

Keynes J.M.,

The geneml

UTET, Torino 1968, p.V.

economica,

italian magazine I1 Mondo,

1967.

14/2/1971. theory

of employment,

interest

and money,

italian

edition, UTET, Torino 1968, p. 340. 5.

Robinson J., Economic

6.

Sessa A., Lo poiitigue

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C.A. Watts & Co., London 1962. en It&e,

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