CHAPTER 3TOURISM

AFTER READING AND STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO: Define tourism Outline the important international and

domestic tourism organizations Describe the economic impact of

tourism Identify promoters of tourism List reasons why people travel Describe the sociocultural impact of

tourism Describe ecotourism

CHARACTERISTICS Year-round economic driver Accounts for 10.2% of world GDP 7.8%

of global workforce Employer of 200 million people or 7.8%

of the global workforce Spending on tourism is $72.3 billion Leading producer of tax revenues

TOURISM OFFERS GREATEST GLOBAL EMPLOYMENT PROSPECTS

Trend factors The opening of borders despite security concerns An increase in disposable income and vacations Cheaper and more exclusive flights An increase in the number of people with time and

money to travel More people with the urge to travel

THE WORLD TOURISM

ORGANIZATION STATES: “Tourism comprises the activities of

people traveling to and staying in places outside their usual environment for not more than one consecutive year for

leisure, business, and other purposes.”

TOURISM CAN BE CATEGORIZED BY THE FOLLOWING FACTORS: Geography Ownership Function Industry Motive

AIRLINES Change occurred in 1978 Purpose is to allow a free market of

competition (fare structures) Change in companies and the way

airlines are doing business

CHANGES SEEN SINCE SEPTEMBER 11, 2001 Business travelers spend less Airlines’ fuel costs, pensions and

security costs are on the rise Major airlines are laying off employees Delivery of new jets is delayed Closing hubs, reservation and

maintenance centers to cut costs

THE HUB-AND-SPOKE SYSTEM Enables passengers to travel from

one smaller city via another smaller city via a hub

Hubs are the centers for connections around the world

BenefitsAirlines can service cities at a lower costAirlines can maximize passenger loads

from small cities, thereby saving fuel

CRUISE SHIPS A floating resort 8.2 million passengers vacationed

on a ship in 2003 alone Most cruise ships sail under foreign

flagsLower labor costUS ships are not permitted to operate

casino-style gamblingLower construction costs

CRUISE MARKET SEGMENTS Mass market Middle market Luxury market

WORLD AND DOMESTIC ORGANIZATIONS Click on the links below for more

information:World Tourism Organization International Air Transportation Organizati

on International Civil Aviation OrganizationOrganization for Economic Cooperation an

d DevelopmentPacific Asia Travel AssociationTravel Industry of AmericaWorld Travel and Tourism Council

ECONOMIC IMPACT OF TOURISM International travelers spend about

$72.3 billion on travel-related expenses in the US annually

20.8 million people are directly employed in the industry

Travel generates $95.6 billion yearly in tax receipts

Approximately 40 million international travelers visit the US each year

MULTIPLIER EFFECT New money spent by tourists is then re-

spent by hotels and restaurants in the community for goods and services

Leakage occurs when money must be spent outside the community for goods unavailable within the community

TRAVEL AGENCIES Serve as a middle person Agents use computer reservation

systems Make money on commissions charged to

hotels and car rental bookings Charge clients a fee for their services What does the future hold for travel

promoters?

CORPORATE MANAGERS Work within a large corporation Can still work with travel agencies Can also be the “meeting planner”

WHOLESALERS Consolidated services

AirlinesOther transportation carriers Ground service suppliers

Tours Sold to the public

NATIONAL TRAVEL OFFICES National Offices

US now has an NTO Private organization

Examples of other NTO’s Canada Germany Australia

DESTINATION MANAGEMENT COMPANIES Service organizations Meet the needs of their clients They sell destinations Meeting planners Incentive companies

REASONS PEOPLE TRAVEL To experience new

and different surroundings

To experience other cultures

To rest and relax To visit friends and

family To view, or

participate in, sporting/recreational activities

REASONS FOR ANTICIPATED INCREASE IN TOURISM Longer life span Flexible working

hours Early retirement Greater ease of

travel Tendency to take

shorter, more frequent trips

Increase in standard of living

APPEAL OF TRAVEL Scenic beauty Pleasant attitudes of locals Suitable accommodations Rest and relaxation Airfare cost Historic and cultural interests Cuisine Water sports Entertainment Shopping facilities Sports

TRENDS IN BUSINESS TRAVEL Companies are requiring employees to

take the lowest reasonable airfare 37% of employees stay over a Saturday

night when it will reduce the airfare 77% impose a size limit on rental cars,

up from 70% 14% regularly make employees stay in

economy hotels such as Hampton Inn or Courtyard by Marriott

SOCIAL AND CULTURAL IMPACT OF TOURISM Tourism pollution Cultural awareness Higher levels of employment

ECOTOURISM Buzzword Seeks to

minimize the impact of tourism

Natural environment and native cultures

TRENDS IN TOURISM Ecotourism Number of tourist arrivals will continue

to increase Governments will continue to recognize

importance of tourism Increase in number of bi-lateral treaties

MORE TRENDS Internet booking will increase Technology will continue to advance Marketing partnerships and corporate

alliances will continue to improve Ticket-less air travel will become

commonplace Managing destinations has become a

challenge Increase in number of “boutique”

airlines Increase in use of automatic airport

check-ins

EVEN MORE TRENDS… Continued expansion in the cruise

industry More alternate cruises Increased concern for health and safety

of travel and tourism Increase in “nature” tourism