Be better at 'the business of tourism'

AC 1.1 - Describe forms of ownership for tourism organisations

Have a go at this 1

Set out below are three scenarios which will test your understanding of business types and ownership.

Scenario 1

RJ’s cafe and bistro bar is located in a seaside coastal town within a short distance of the local beach and coastal walks in south east England. The cafe/ bistro bar has indoor seating as well as a terrace facing the sea. A range of ages enjoy what the cafe/bistro bar has to offer, from visitors popping in for a coffee to groups enjoying the bistro facilities during an evening. Sometimes, the cafe/ bistro bar has live music playing as entertainment for its guests.

The owner, Mrs Rhian James, wants to open another cafe / bistro bar as this one is doing remarkably well. She wants her friend to join her in her new venture as she believes they will be more successful together.

Activity 1

Which term in the list below describes the current form of ownership of the RJ’s cafe/bistro bar?

  • Sole Trader
  • Partnership
  • Limited Company

Name one other form of ownership not given in the list above?

Mrs Rhian James wants to expand her business by opening another similar cafe/bistro bar. She has invited her friend to join in with her.

  • What sort of business will this be?
  • What advice would you give to Mrs Rhian James about changing her form of ownership? Think about the advantages and disadvantages. Write your answer in the box below.

Scenario 2

The National Trust is a large tourism organisation, funded by grants from organisations such as The National Lottery, Heritage Lottery, Sport England and the Arts Council as well as donations from the public through membership schemes and day visit tickets. The National Trust has many properties spread throughout the UK and it attracts visitors from the UK and worldwide. Many of the National Trust’s properties are popular visitor attractions.

Activity 2

To describe the National Trust’s ownership indicate whether the following statements are either True or False.

Activity 3

Different sectors of the tourism industry often work together so that each one benefits.  Explain how a hotel and transport provider could work with the National Trust to their mutual benefit.

Scenario 3

Daredevil Theme Park is a popular visitor attraction which offers a range of adventure and family rides. Daredevil is owned by Themed Leisure PLC which operates more than 20 visitor attractions including water parks, zoos, leisure parks and aquariums. Themed Leisure PLC employs 1,000 permanent staff and 2,000 temporary staff during the peak season. Themed Leisure PLC is a dynamic and highly competitive business which aims to be a world leader in visitor attractions by continual growth and updating of present facilities.

Activity 4

Themed Leisure PLC is a public limited company.  Make a selection that correctly completes the sentence about a plc.

Activity 5

Complete the following paragraph by filling in the gaps with the most appropriate word from the list below.

Activity 6

Explain one advantage and one disadvantage of Themed Leisure PLC being a public limited company (plc).