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Zero Dollar Tour
Name : Akiko Nada Atsmara ID : 55920719

International Tourism Management 2012

Economics for Tourism Quiz
Question: What is a “zero-dollar tour”? How does it affect Thailand’s travel and tourism industry? Analyze the positive/negative effect and what should the Government do to? Zero-Dollar Tour Believed to be originated from Chinese media, the zero-dollar tour denotes a sort of inferior quality in China’s outbound package tours. Zero-dollar tours, or zero-based tour fares, are those where the tour operator allows tours without, or with very low fees. Thus providing no profit margin. Often the tour’s fees cannot cover the costs of the tour guide or the tour operators; the operators rely for income on the commissions from tourists’ shopping and expenses. This business of package tours has been showing a wide range of inferior quality since the 1980’s, along with the tour operator’s misinterpretations of product information, defects on contracted services as well as misguiding consumptions and cheating tourists at the destination. Zero-dollar tours derive their name from package tours sold mainly in China, and to a much lesser degree in Korea, which include free air fare and low-cost accommodation. China 's rapid economic growth has fostered a tourist boom among the mainland Chinese, with Southeast Asia the favorite destination, at least for now. The surge in package tour groups from China, an important source of income for the region. Since the zero-dollar tour’s prices are much lower than normal tour, and the price offered cannot cover all of the tour costs. Because of the low price offered by these tours, the tour guide forces the tourists to go shopping and they gain income from the commission charged. Some tour operators provide no salary for the tour guides, who then use unethical methods to force tourists to make purchases and thus earn commissions. Once the incredulous (and gullible) tourists, the customers of this package tour sets foot in the certain



References: Books & Journals:  Louis Lebel, Sylvia Lorek, Rajesh Daniel (2010): Sustainable Production Consumption Systems: Knowledge, Engagement and Practice, Springer Dordrecht Heidelberg London, New York.  Wolfgang Georg Arlt (2006): China 's Outbound Tourism, Routledge, New York.  Yong Chen, Barry Mak & Yingzhi Guo (2011): “Zero-Fare” Group Tours in China: An Analytic Framework, Journal of China Tourism Research. Available on: http://www.chinatraveltrends.com/2011/12/specialissue-on-mainland-chinas-outbound-tourism-in-the-jctr/ [accessed on 23 July 2012 at 16.30 PM]  Chau Tsz Yau, Timmy (2011): Zero-Dollar Tours In Hong Kong: An Exploration Of Ethical Issues, Hotel and Tourism Management Institute, Switzerland. Available on: https://www.box.com/shared/g6883tbbxj [accessed on 23 July 2012 at 16.30 PM] Articles & internet:  http://www.sturesearch.ch/?p=842 [accessed on 23 July 2012 at 16.30 PM]  Beth Green (2012): How to Go (or Not): Chinese Package Tours, eChinacities.com . Available on: http://www.echinacities.com/expat-corner/how-to-go-or-not-chinese-package-tours.html [accessed on 23 July 2012 at 17.00 PM]  Wayne Arnold (2005): Chinese on a Grand Tour, The New york Times. Available on: http://www.nytimes.com/2005/10/21/business/21tourists.html [accessed on 23 July 2012 at 17.00 PM]  Anthony Allison (2005): Thailand 's zero-sum tourism, Asia Times. Available on: http://www.atimes.com/atimes/Southeast_Asia/GG14Ae01.html [accessed on 23 July 2012 at 17.00 PM]  http://www.waywordradio.org/zero_dollar_tour_1/ [accessed on 23 July 2012 at 17.15 PM]  Chanida Sa-ngiamphaisalsuk (2010): Zero-dollar battle continues, TTR Weekly. Available on: http://www.ttrweekly.com/site/2010/03/zero-dollar-battle-continues/ [accessed on 23 July 2012 at 17.15 PM]  Sujintana Hemtasilpa (2006): 'Zero-Dollar ' Tours Bad For Thai Business, Bangkok Post. Available on: http://www.thailandqa.com/forum/showthread.php?10137-Zero-dollar-tours-bad-for-Thai-business [accessed on 23 July 2012 at 17.15 PM]  __ (2006): Chinese tourists: Asia 's new 'ugly Americans ', China Daily. Available on: http://www.chinadaily.com.cn/english/doc/2006-01/04/content_509166.htm [accessed on 24 July 2012 at 09.30 AM]  __(2003): Thailand slashes tour prices in bid to meet 1-m target for Chinese tourists, Asian Tribune. Available on: http://asiantribune.com/news/2003/06/19/thailand-slashes-tour-prices-bid-meet-1-mtarget-chinese-tourists [accessed on 24 July 2012 at 09.30 AM]  http://english.people.com.cn/english/200008/22/eng20000822_48788.html, [accessed on 24 July 2012 at 09.30 AM]

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