The production process makes explicit two special features of tourism
products. First, value is added at each stage of the production
process. Value-added is the difference between the costs of production
at any given stage and what the consumer is willing to pay. Second,
the consumer is an integral part of the production process. The production
of most non-tourism products occurs independently of the consumer.
For example, automobiles are manufactured without the motorist's
active involvement on the production line; auto insurance is
offered for sale without the insuree's involvement (except, of course, for
paying the premiums); a surgical patient does not assist with cutting or
suturing. Tourism products, however, do not exist until a consumer
journeys to the point of production and actively gets involved in the
final phase.
The physical plant element is incorporated into the generic product
at the primary input and intermediate input phases. Service and hospitality
elements are added as the intermediate inputs are processed
into the intermediate output phase. Finally, freedom of choice and
involvement transform the intermediate outputs into the experiences
of the Final Output phase.
A major implication of the observation that tourism products require
the active involvement of consumers in their production is illustrated
by the Leiper (1993) and Smith (1993) debate. A question implicit in
their debate was whether a business could belong to more than one
industry. The tourism production process provides the answer.
In Leiper's (1993) view, tourism production stops at the intermediate
output stage. Restaurants, for example, produce prepared meals as
their product, which are consumed by both locals and tourists. From
the perspective of the proposed model, tourists take the intermediate
output of a restaurant meal and "refine" it into a tourism product--a
personal tourism experience.
At an empirical and statistical level, an analyst observes and measures
the value of prepared meals as an output in the foodservices
industry. The value of the intermediate foodservices output can be
assessed at the level of all meals sold, or disaggregated by meals consumed
by locals versus tourists (Smith 1988). At the more "advanced"
level of tourism industry assessment, the foodservices output is processed
into a tourism product and a certain percentage of the volume
of sales is properly allocated to the tourism industry.
The production process makes explicit two special features of tourismproducts. First, value is added at each stage of the productionprocess. Value-added is the difference between the costs of productionat any given stage and what the consumer is willing to pay. Second,the consumer is an integral part of the production process. The productionof most non-tourism products occurs independently of the consumer.For example, automobiles are manufactured without the motorist'sactive involvement on the production line; auto insurance isoffered for sale without the insuree's involvement (except, of course, forpaying the premiums); a surgical patient does not assist with cutting orsuturing. Tourism products, however, do not exist until a consumerjourneys to the point of production and actively gets involved in thefinal phase.The physical plant element is incorporated into the generic productat the primary input and intermediate input phases. Service and hospitalityelements are added as the intermediate inputs are processedinto the intermediate output phase. Finally, freedom of choice andinvolvement transform the intermediate outputs into the experiencesof the Final Output phase.A major implication of the observation that tourism products requirethe active involvement of consumers in their production is illustratedby the Leiper (1993) and Smith (1993) debate. A question implicit intheir debate was whether a business could belong to more than oneindustry. The tourism production process provides the answer.In Leiper's (1993) view, tourism production stops at the intermediateoutput stage. Restaurants, for example, produce prepared meals astheir product, which are consumed by both locals and tourists. Fromthe perspective of the proposed model, tourists take the intermediateoutput of a restaurant meal and "refine" it into a tourism product--apersonal tourism experience.At an empirical and statistical level, an analyst observes and measuresthe value of prepared meals as an output in the foodservicesindustry. The value of the intermediate foodservices output can beassessed at the level of all meals sold, or disaggregated by meals consumedby locals versus tourists (Smith 1988). At the more "advanced"level of tourism industry assessment, the foodservices output is processedinto a tourism product and a certain percentage of the volumeof sales is properly allocated to the tourism industry.
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