Tourism

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C H A P T E R

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Tourism

Characteristics  Year-round economic driver  11.7% of world GDP makes it world’s largest industry  10% of global workforce  Support the creation of over 5.5 million jobs per year

over next decade (1 in every 11.2 jobs)  8% of all jobs worldwide will depend on the industry

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Environmental factors – affect employment  Visa waiver program  China travel - MOU  People’s preference  Economic condition

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Interdependency of Tourism Segments Airlines Transportation

Recreational Activities

Hotels Lodging

Foodservice Restaurants

Tourism Defined Comprises 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.

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Definitions  Tourist - A person who stays for more than one

night and less than one year (UN definition; tour for pleasure or convention)

 Visitor - A person who visits a country other than

where they reside for not more than one year  Excursionist - A person who travels to a site and

returns the same day

Tourism Categorized in Terms of the Following Factors  Geography (international, regional, state)

 Ownership (government, private)  Function (suppliers, educators, associations)  Industry (transportation, travel agents)  Motive (profit or nonprofit)

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5 Ages of Tourism  Pre-Industrial Revolution (prior to 1840)  The Railway Age  The Automobile Age  The Jet Aircraft Age  The Cruise Ship Age

1. Pre-Industrial Revolution  Phoenicians were first travelers  Trade, commerce and food supply were the

motivation  Romans also traveled to shrines, seaside resorts

and the attractions of their time in Egypt and Greece  Most medieval travel was of a religious nature

(pilgrimages to shrines)

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2. The Railway Age  Prior to rail travel,

tourists traveled by horse and carriage.  First railroad in U.S.

built in 1830  By 1869

transcontinental travel

Today, U.S. rail travel has declined however railroads in Europe and Asia play far more important roles in passenger transportation.

3. The Automobile Age  Production of

automobiles began in 1891  Almost 200 million

automobiles are registered today

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4. Air Travel  The first U.S.

scheduled air service was in 1915  In 1946, American and

European reps came up with the “Bermuda agreement”

a. Six Freedoms of Air Travel 1. Right to fly across another nation’s territory 2. Right to land in another country 3. Right to disembark passengers and cargo 4. Right to pick up passengers and cargo 5. Right to transport passengers and cargo 6. Right to carry traffic from a foreign country to the home nation and beyond

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b. Airline Deregulation Act of 1978  Purpose was to allow free-market competition –

airlines could decide their own fare structures and rates.  Resulted in new airlines, lower airfares, etc.  Forced noncompetitive airlines out of business.  Change in companies and the way airlines are

doing business.

5. Cruise Ships  A floating resort  Has increased 800%

from 1970 to 2000  Most cruise ships sail

under foreign flags  Approximately 7 million

Americans could/will be cruising each year

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International Tourism Organizations http://www.unwto.org/index.php

 UN WTO – U.N. World Tourism Organization  APTA – Asia Pacific Tourism Association  PATA – Pacific Asia Travel Association  IATA – International Air Transportation

Association  WB – World Bank

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State Offices of Tourism  HTA – Hawaii Tourism Authority  HVCB – Hawaii Visitors and Convention

Bureau  DBEDT – Department of Business, Economic Development & Tourism http://www.hawaiitourismauthority.org/ http://www.hvcb.org/

http://hawaii.gov/dbedt/

Economic Impact of Tourism  Economic Impact…  WTTC - World Travel and Tourism Council  Tourism is growing twice as fast as world GNP  Look up the current statistics on tourism  http://www.wttc.org http://www.wttc.org/eng/Tourism_Research/Tourism_Sat ellite_Accounting/

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Multiplier Effect  New money spent by tourists is then re-spent by

hotels and restaurants in the community for goods and services

=

Leakage  When money must be spent outside the community for

goods unavailable within the community

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Promoters Travel Agencies  Serve as a middle person  Agents use computer reservation systems  Make money based on commissions  What does the future hold for promoters especially with

more people using the Internet to book travel?

Corporate Travel Managers  Work within a large corporation  Can still work with travel agencies  Can also be the “meeting planner”

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Travel & Tourism Wholesalers  Consolidates services   

Airlines Other transportation carriers Ground service suppliers

 Tours  Sold to the public

Reasons for Travel  Business 

20%

 Leisure 

70%

 Other 

10%

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Business Travel Activities  A good portion of business travel is mixed with pleasure.  Conventions are a main reason for business travel.  Tends to be non-seasonal

e.g. Hawaii Convention center http://www.hawaiiconvention.com/

Reasons for Leisure Travel  Experience new surroundings  Different cultures  Rest and relax  Visit friends and family  Sporting/recreation activities

e.g. HVCB,

http://www.hvcb.org/ & www.gohawaii.com

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Leisure Travel Increase…  Longer life span  Flexible working hours  Early retirement  Greater ease of travel  Shorter, more frequent trips

Social and Cultural Impact  Tourism pollution  Cultural awareness  Higher levels of employment

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Eco-Tourism  responsible /sustainable

tourism  Seeks to minimize the impact of tourism  Natural environment and native cultures

http://www.hawaiiecotourism.org/

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Current Trends in Tourism  Tourism will continue to rise by about 8% annually (before 2008);  

2008: 2% growth 2009: 0 to -2% growth

 Increased governmental recognition of the importance

of tourism  Internet bookings will increase www.expedia.com , www.travelocity.com

 Employments prospects will continue to improve (slowed for now)

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