Chapter 2 Tourism

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Chapter 2Tourism
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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

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Characteristics

• Year-round economic driver
• Accounts for 10.2 of world GDP
• Employer of 200 million people or 7.8 of the
  global workforce
• Spending on tourism is 72.3 billion
• Leading producer of tax revenues

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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

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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.

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Tourism Can Be Categorized by the Following
Factors

• Geography
• Ownership
• Function
• Industry
• Motive

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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

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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

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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
• Benefits
• Airlines can service cities at a lower cost
• Airlines can maximize passenger loads from small
  cities, thereby saving fuel

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The Hub-and-Spoke System
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Cruise Ships

• A floating resort
• 8.2 million passengers vacationed on a ship in
  2003 alone
• Most cruise ships sail under foreign flags
• Lower labor cost
• US ships are not permitted to operate
  casino-style gambling
• Lower construction costs

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Passengers Taking a CruiseLonger Than 2 Days
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World and Domestic Organizations

• World Tourism Organization
• International Air Transportation Organization
• International Civil Aviation Organization
• Organization for Economic Cooperation and
  Development
• Pacific Asia Travel Association
• Travel Industry of America
• World Travel and Tourism Council

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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

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

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The Multiplier Effect
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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?

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Corporate Managers

• Work within a large corporation
• Can still work with travel agencies
• Can also be the meeting planner

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Wholesalers

• Consolidated services
• Airlines
• Other transportation carriers
• Ground service suppliers
• Tours
• Sold to the public

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National Travel Offices

• National Offices
• US now has an NTO
• Private organization
• Examples of other NTOs
• Canada
• Germany
• Australia

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Destination Management Companies

• Service organizations
• Meet the needs of their clients
• They sell destinations
• Meeting planners
• Incentive companies

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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

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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

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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

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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

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Social and Cultural Impact of Tourism

• Tourism pollution
• Cultural awareness
• Higher levels of employment

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Ecotourism

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

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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 for
  visas and travel opportunity.

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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

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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

Royal Caribbean International's newest ship ,
Oasis of the Seas is the world's largest,
accommodates 5,400 guests and weighs 220,000
gross registered tons.
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The GalileoDesktop CRS
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