1. NEW DEVELOPMENTS & TRENDS IN INTERNATIONAL TOURISM 1

2. Contents International Tourism and Leisure Industry Inbound Tourism Worldwide Leisure Tourism Categories A Typology of Motivators in International Tourism Major trends in International Tourism Factors Leading to International Tourism Trends Long-Term Trends in Tourism The Change in Customer profile: The new tourist Different Sub Groups of Length of Stay Preferences Variety of Tourism to Participate UNWTO Reports on Tourism Trends Prospects for Future Travel 2

3. Main elements: Main elements: Vital force for peace Social importance Economic importance Cultural enrichment Employment opportunities Educational significance International Tourism and Leisure Industry 3

4. INBOUND TOURISM WORLDWIDE 4

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7. Business travel Business travel Meetings, conferences, seminars, workshops, and training sessions Incentive travel Normal business travel May be a combination of first two Research and teaching travel Includes all forms that are work related MICE (meetings, incentives, conferences, e xhibitions) International Tourism and Leisure Industry 7

8. L eisure travel L eisure travel Large and growing sector Large and growing sector Includes travel for pleasure and recreation, visiting friends and relatives (VFR), history and culture, attractions, entertainment, cruising, sightseeing etc. International Tourism and Leisure Industry 8

9. Leisure Tourism Categories 9

10. A Typology of Motivators in International Tourism 10

11. Major trends in International Tourism (some) heritage, culture, eco, sports 1) Increase in the demand for alternative tourism types like heritage, culture, eco, sports etc. (an optimal bundle of them as a package tour, specialized tours) Creative Tourism 2 )Need for Creative Tourism green hotels, thematic hotels, spa hotels, convention hotels, all-suite hotels, etc. 3) Hotel trends to fit the needs for customers: the lodging facilities specialize in areas like; green hotels, thematic hotels, spa hotels, convention hotels, all-suite hotels, etc. 11

12. Major trends in International Tourism (some) safety and security 4) Continued concern for safety and security in tourism price sensitive PERCEIVED VALUE 5) Growing number of price sensitive consumers maximizing the value of the service purchased, Price wise comparison: PERCEIVED VALUE is the key word internet usage e-tourism 6) Increase in internet usage in tourism operations and e-tourism rate quality service 7) Increased levels of expectation for quality service 12

13. Major trends in International Tourism (some) business 8) Changes in business tourism (MICE etc.) like space tourismadventure tourism, boutique jet airlinesdark tourism 9) Introduction of new tourism products; like space tourism, adventure tourism, boutique jet airlines, dark tourism etc. destination management and marketing 10) Applications of destination management and marketing 13

14. five basic factors leading There are five basic factors leading to changes in global trends and consumer behaviors in tourism 1. Globalization 2. The improvements in technology 2. The improvements in technology: 3. Changing economic conditions profile of consumers 4. The change in the demand profile of consumers 5. Political aspects: War on Terror 5. Political aspects: the ‘War on Terror’, safety and health, the need for growing security 14 Five Basic Factors Leading to International Tourism Trends

15. 1. GLOBALIZATION Tourism contributes to globalization Tourism contributes to globalization (flows of tourists around the world, creation of a global tourist culture, development of multinational corporate organizations like hotels) Globalization contributes to tourism development Globalization contributes to tourism development (increasing free circulation of people and services: ideas of liberalization and market economy) 15

16. GLOBALIZATION 16

17. Globalization Involves Us All We experience international transactions daily Imports and exports reach even remote areas Technology and e-biz promote trade Consumers and companies pull markets closer 17

18. Global Drivers for International Tourism Positive Technology Open Markets Economic Integration Peace Corporate Strategy Global Focus Negative Culture Market Barriers Market Barriers National Barriers National Barriers War War Corporate Strategy Local focus Local focusFocus 18

19. Impacts of International Hotel Chains on International Tourism and leisure Destinations Advantages Advantages: - increase capital in less developed. countries, - technology and management know-how sharing - distribution of risks, global environment, - new markets in global environment, supply, - to increase supply, yment and income - increase employment and income, season longer - make tourism season longer, 19

20. Disadvantages Disadvantages: - After a while leads to monopoly, - Disability to compete as a local investor, - Discourage domestic tourism, - Company and country benefits may not fit with it, - Profit is transferred outside as the form of leakages Impacts of International Hotel Chains on International Tourism and leisure Destinations 20

21. 2. THE IMPROVEMENTS IN TECHNOLOGY: TRANSPORTATION AND COMMUNICATION The rise of the new technologies, like the information technology, internet and biotechnology had huge impacts on global tourism. Transport: A380 (« superjumbo ») xamples such as null Product innovation – examples such as null hotels, no staff hotels, etc. e-tourism and interne t 21

22. Telecommunications and Networking tools in the Tourism Industry Telephone, telex and fax Mobile devices Videotext and new data Teletext Electronic Data Interchange (EDI) Inter-organisational and Intra-organisational networking Virtual reality Information superhighway (converges media, telecommunications and information technology) 22

23. Internet low-cost carrier Enabled the low-cost carrier revolution price transparency More price transparency / competition Empowered tourists to share opinions with the world: no hiding place for those offering poor quality route to market Provides incomparable ‘route to market’ for tourism businesses – big or small Big in numbers Big in numbers! Only 5 % of Indian’s have access, but that is 60 million people !!! 23

24. Functions of Internet in tourism Information distribution Electronic commerce Request availability/prices/information Reservation and confirmation Expanding value chain with complementary products Deposits and full settlements Specific requests/enquiries Feedback/complaints Ancillary services 24

25. Navigation and CRS GPS hoteliers and consumers. Navigation and GPS technologies are providing endless opportunities to hoteliers and consumers. computer reservations systems Today, tourism organizations are virtually using computer reservations systems. CRS allows reservationists to conclude sales more easily and to place guests in the right hotel at the right price anywhere in the world. 25

26. Increase in e-tourism rate leads to trends as: Internet in travel-planning The use of Internet in travel-planning / booking by both business and leisure travelers seems to continue to grow Direct on-line bookings Direct on-line bookings by customers are predicted to make up a significant market share by 2010 with access available to most of the population in industrialized countries; Virtual tourists “Virtual tourists” will have an increasing demand for multi-media travel information Interactive TV and mobile devices Interactive TV and mobile devices will increasingly be used for the distribution of tourism products and services. 26

27. The e-Tourism mix The eTourism concept and eTourism domains

28. 3. GLOBAL ECONOMY International tourism was negatively affected in the years of 2008 & 2009 from economic crisis, turbulence and contrasts The growth in international tourist arrivals has slowed drastically worldwide Extremely volatile and unfavorable global economy: credit crunch, financial crisis the widening financial crisis, oil price rises commodity and oil price rises, exchange rate and massive exchange rate fluctuations. 28

29. GLOBAL ECONOMY and EFFECTS on TOURISM INDUSTRY International tourism International tourism was affected more than domestic tourism, Business tourism Business tourism more than leisure tourism, otels Hotels more than other accommodation and Air transport Air transport more than other transport. 29

30. New Economy new economy The emerging economic structure is now also called “new economy”. economic growth and competitiveness This term is aimed at underlining the fact that the factors of economic growth and competitiveness are changing. Consumers’ behaviour Consumers’ behaviour, consumption structure, production structure and corporate structures are changing. 30

31. 4.The change in the demand profile of consumers experience orie More learning and experience oriented tourists, Changing preferences of destinations and length of stay for travels, tourism types Demanding various tourism types, Changing demographics like aging population, changing family size, etc 31

32. 5. Political Factors: More Concern for Security and Health Typical examples Typical examples: 9/11, Bird Flue, the ongoing turmoil in the Middle East, Swine Flue etc... Unstable political situation Unstable political situation in many regions of the world Some realities Some realities: tourists’ anxieties, panics, some overreactions Some misconceptions Some misconceptions: tourism is not that elastic 32

33. Long-Term Trends in Tourism 33

34. THE CHANGE IN CUSTOMER PROFILE: THE NEW TOURIST Educated customers and a fragmented market today: so we need to be creative and innovative Experiences what you do’ more important tha‘Experiences’ not ‘destinations’ count‘: n ‘where you do it’ Authenticity Authenticity – wildlife, food and living culture: travel- savvy visitors have higher expectations than earlier generations More sophisticated, intelligent and educated customes More sophisticated, intelligent and educated customes “they know what they want” 34

35. Consumer Trends: The “New Tourist” Experienced and independent Experienced and independent “do it yourself” travel bookings, destination research More interested in More interested in Trying new experiences, new tastes, new life styles, new people Likes to connect with others Likes to live in a different culture than his or hers Technology and learning oriented Technology and learning oriented best price/quality ratio Looking for best price/quality ratio in tourism products & value for money 35

36. Consumer TrendsThe “New Tourist” Consumer Trends: The “New Tourist” More active: More active: prefers multi-activities and willing to learn from other cultures nature freindly and socially sensitive Increasingly nature freindly and socially sensitive Wants deeper appreciation Wants deeper appreciation of destinations visited various preferences Has various preferences for various lengtht of vacations, demands different tourism types, etc. 36

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38. Different Sub Groups of Length of Stay Preferences The industry has become more responsive to customers’ demand for flexibility: shorter Choice of shorter breaks serial holidaymakers More ‘serial holidaymakers’ (multiple breaks) career breaks Long holidays taken in career breaks flexible working patterns More firms adopting flexible working patterns 38

39. Variety of Tourism to Participate Social factors such as demographic change and trends to healthier lifestyles have encouraged: Adventure Adventure holidays Leisure Leisure and activity-related breaks Extreme Extreme and risk sports holidays Culture trips Culture trips Medicalhealth Medical tourism, health tourism Agritourism Agritourism Sports Sports tourism Medical Medical /Health tourism 39

40. Creative Tourism creative potent active participation learning experiences Tourism which offers visitors the opportunity to develop their creative potential through active participation in courses and learning experiences which are characteristic of the holiday destination where they are undertaken 40

41. Nature Based & Sustainable Tourism  There is an increasing awareness at the level of governments of the social, economic and environmental importance of the tourism sector, and of the impacts it causes on destinations.  Globally, the responsibilities of governments in tourism development have tended to become more decentralized, with many mandates  There is an increased awareness, on the part of tourists, of the need for sustainability. 41

42. Nature Based & Sustainable Tourism 42

43. Nature Based & Sustainable Tourism Issues gaining importance, many talks and news, beginnings of action, recession hinders change nature protection People are interested in sustainability but still half is not willing to pay more for nature protection Studies show that still 47 % willing to pay higher fees yet 53 % were not 43

44. Agritourism Agritourism, as it is defined most broadly, involves any agriculturally-based operation or activity that brings visitors to a farm or ranch. Agritourism is a form of niche tourism that is considered a growth industry in many parts of the world, Agritourism overlaps with geotourism, ecotourism, wine tourism and culinary tourism. Other terms associated with agritourism are "agritainment", "value added products," "farm direct marketing", and "sustainable agriculture". 44

45. Camping Camping Sometimes overlooked as part of the travel and tourism industry Campers travel millions of miles a year in the U.S., Canada, and Europe an enormous business Statistics in dollars and numbers of campers show that camping is an enormous business Vast expenditures for RVs and camping equipment Travel for Natural Beauties 45

46. Includes traveling to attend spectator sports and/or participate in sporting activities Olympics and World cup Travel for Sports Australian, French, and U.S. Open, and Wimbledon Superbowl, World Series, and the Masters Active sports (Biking, Surfing etc.) 46

47. Also includes local-level games and competitions Also includes local-level games and competitions Positive effects on local economy health through physical activities Concept of health through physical activities has sparked renewed interest Tremendous economic impact two out of five U.S. Every year, two out of five U.S. adults travel for sports Travel for Sports (cont’d.) 47

48. Includes (but not limited to): Off-road bike tours White water rafting African safaris and wildlife tours urs Rainforest canopy tours Bungee jumping Travel for Adventure 48

49. Segment is growing at a fast pace ½ U.S. adults (i.e., 98 million people), took an adventure trip in the last few years hard adventure 31 million adults engaged in hard adventure activities Adventure travelers are more likely to be young, single, and employed Travel for Adventure (cont’d.) 49

50. referred to as pilgrimage Often referred to as pilgrimage Practicedfor hundreds of years Practiced for hundreds of years Still fairly common today Still fairly common today Broken down into two categories Broken down into two categories: Satisfying one’s religious convictions Satisfying one’s religious convictions Fulfilling one’s curiosity about a particular faith or practice Fulfilling one’s curiosity about a particular faith or practice Religious Travel 50

51. schurches, Thousands of sites (e.g., holy lands, churches, temples, and mosques) Attract millions of tourists each year Some examples include: Mountains of Buddhism pay homage to Buddha Muslim pilgrimage to Mecca and the Hajj is the peak of their religious life Catholic Vatican is a holy land of sorts Religious Travel Religious Travel (cont’d.) 51

52. Health tourism is defined as: Attempts of tourist facilities to attract tourists by promoting health care services and features in addition to regular tourist amenities Medical and Health Tourism 52

53. Health care services may include: Hydrotherapy Hydrotherapy treatments Beauty Beauty treatments Relaxation Relaxation techniques Cellulite Cellulite treatment Medical Medical examinations Operations of all kinds Health Tourism (cont’d.) 53

54. diet, and nutritional a Special exercise, diet, and nutritional advice arthritis Medical treatments for specific diseases such as arthritis therapies Alternative therapies Body massages Body massages Health Tourism (cont’d.) 54

55. Medical Tourism surgeries replacement (knee/hip), cardiac surgery, dental surgery, and cosmetic surgeries. Services typically sought by travelers include elective procedures as well as complex specialized surgeries such as joint replacement (knee/hip), cardiac surgery, dental surgery, and cosmetic surgeries. India Over 50 countries have identified medical tourism as a national industry, including India 55

56. Space Tourism different purposes. Space tourism is space travel for different purposes. a space tourism industry A number of startup companies have sprung up in recent years, hoping to create a space tourism industry. Russian Space Agency Orbital space tourism opportunities have been limited and expensive, with only the Russian Space Agency providing transport to date. 56

57. Space Tourism 57

58. Space Adventures There are 4 basic experience products Orbital Orbital flights Sub-orbital Sub-orbital flights Spaceflight Spaceflight training adventures Space-related flight adventures 58

59. Space Tourism Space Adventures Russian Soyuz The publicized price for flights brokered by Space Adventures to the International Space Station aboard a Russian Soyuz spacecraft have been US $ 20–35 million, during the period 2001–2009. 59

60. Space Tourism Russia halted orbital space tourism in 2010 due to the increase in the International Space Station crew size, using the seats for expedition crews that would be sold to paying spaceflight participants. Soyuz However, tourist flights are tentatively planned to resume in 2013, when the number of single- use three-person Soyuz launches could rise to five a year 60

61. Cruise Tourism travel segments Out-performed all other travel segments since 2000 since 1990 avg. 7.4 % annual growth since 1990 mega cruis More mega cruise ships benefiting from larger economies of scale lifestyle Greater product differentiation including offerings to families, the youth market and ‘lifestyle’ cruises More recreational opportunities More recreational opportunities on board cruise ships 61

62. Cruise Tourism: The future design and technical innovation More design and technical innovation in cruise ships recreational opportunities More recreational opportunities on board cruise ships New cruise regions, as traditional areas become congested New cruise locations New cruise locations cruise industry and environmentalists Greater conflict between the cruise industry and environmentalists 62

63. Dark Tourism black tourism death and tragedy (also black tourism) is tourism involving travel to sites associated with death and tragedy death and suffering The main draw to these locations is mostly due to their historical value rather than their associations with death and suffering 63

64. One of the main trends is the growth of video- conferencing as : Technology Technology allows ‘real-time’ networking at a distance Equipment costs Equipment costs and line charges fall Organisations become more environmentally- aware 64

65. UNWTO reports on Tourism Trends UNWTO reports on Tourism Trends: expected to double Tourism expected to double in next 15 years overall annual rate Tourism growing at overall annual rate of 4 % nature and culture Increasing interest in nature and culture tourism Nature based travel Nature based travel increasing at annual rate between 10 % and 30 % cultural component 37 % of all international trips include a cultural component 65

66. Tourism future: interrelated industry groupings Likely to continue being the one of fasting growing interrelated industry groupings UNWTO forecasts 1.6 billion international arrivals by 2020 intraregional 1.2 billion intraregional travelers long-haul 378 million long-haul travelers Predicting the Future of Travel 66

67. Top 2020 total tourist arrivals by region Europe Europe (717 million tourists) East Asia and the Pacific East Asia and the Pacific (397 million) Americas Americas (282 million) AfricaMiddle East Followed by Africa, the Middle East, and South Asia Predicting the Future (cont’d.) 67

68. Number of International Tourists (millions) and World Tourism Receipts(billion USD ) Year# of touristsTourism Receipts 1950252.1 1960706.8 197016518 1980285105 1990458268 2000698475 2002714470 2008913941 2009877852 2010935900 2023 (prediciton)1.7002.000 68

69. International Tourist Arrivals and Trends, 1950–2020 69

70. Demand factors: behavior and preferences Consumer behavior and preferences Demographics (e.g., age) are also associated niche markets Splintering of tourism niche markets ChinaIndia Outbound tourism from China and India Capacity control Capacity control and mass tourism Demand Influences and Issues 70

71. Supply side: Supply side: Will continue to modify product offerings environmental protection Emphasis on environmental protection Quality of services in emerging markets must improve More available experiences will provide greater fulfillment space tourism to medical tourism From space tourism to medical tourism Supply-Side Influences 71

72. environmental issues A number of environmental issues will affect tourism in the future global warming Sectors are beginning to address and rectify contributions to global warming Tourism can affect whole ecosystems environmentally sensitive destinations Damage caused by visitation to environmentally sensitive destinations The Environment 72

73. Governments and the private sect Governments and the private sector Must work together to promote more responsible travel and tourism Alternative fuels Eco-tourism will likely grow Eco-tourism will likely grow Consumers expect more sustainable vacation experiences Issues of certification and compliance will grow The Environment (cont’d.) 73

74. E-tourism E-tourism as mentioned before: Evolved from a trend to a mainstream business reality Creating opportunities and challenges for practitioners and researchers in the area Information technology Information technology: Will improve rapidly to help facilitate tourism and tourists Information Technology 74

75. Information access Information access will greatly improve Technology will improve the travel and tourism experience Bookings will become easier More options will increase competition Transportation will likely be a challenge due to congestion Information Technology (cont’d.) 75

76. Current global economic situation modest growth in tourism Only a modest growth in tourism is likely in the next few years developed and developing Tourists from developed countries will drive tourism by visiting other developed and developing countries U.S., Canada, Mexico, European countries, and Asian countries will see an increase in international visitors Economic Change 76

77. Travel and tourism has an enormous impact on the world economy local, state, provincial, and central governments Receiving increasing attention from local, state, provincial, and central governments sluggish economies Perceived as a viable means to stimulate sluggish economies Government Promotion 77

78. taxes and other income Governments benefit in the form of increased taxes and other income Government entities promote tourism directly and indirectly National tourist offices National tourist offices States and provinces also advertise Money raised from taxes and donations Money raised from taxes and donations Government Involvement 78

79. Many areas turn to tourism as the only way of raising up from poverty level new Tourist money is money that is “new” from outside the economy additional spending Triggers rounds of additional spending Government (cont’d.) 79

80. Trends that favor tourism: Trends that favor tourism: Rising disposable income Rising disposable income 67 % of travelers are employed full or part time Mean annual household income of travelers is $70,200 Greater discretionary time Greater discretionary time Retirees Workweek has shrunk Prospects for Future Travel 80

81. Changing family structure Changing family structure Birthrates have declined sharply Sexual equality and shifts in household roles Increased number of retired persons Increased number of retired persons Earlier retiring ages Pension plans Life expectancy is rising Prospects (cont’d.) 81

82. Change in living conditions Change in living conditions Higher homebuilding costs increases living in smaller spaces, stimulating need to get away Education and shift in values Education and shift in values People are thinking in more global terms Shift in values: for many, doing something, or taking part in something, has assumed more importance than material possessions Travel simplification Travel simplification Tour packages offer simplicity Prospects (cont’d.) 82

83. Factors that inhibit travel Uncontrollable issues Uncontrollable issues Economic uncertainty, recession, political unrest, terrorism, and excessive labor costs in transportation Travel hassles and security Travel hassles and security Baggage problems, delays, overbooking, etc. Lack of security in public places Too much security in airports Prospects (cont’d.) 83

84. Product Markets Existing product markets: Leisure / Holiday tourism Rural tourism Ecotourism Cultural/heritage tourism Emerging and future product markets: Special interest tourism Special interest tourism Agri-Tourism Agri-Tourism Space tourism Space tourism Creative tourism Creative tourism MICE tourism MICE tourism 84

85. Conclusions competitiveness Information Telecommunication Technologies increasingly determine the competitiveness of tourism organizations Internet, Extranet and Intranet Tourism industry should take advantage of the Internet, Extranet and Intranet to manage its representation to the world, its internal efficiencies and its relationships with other partners. ICT-enabled ICT-enabled tourism organizations will benefit and grow in the future 85

86. Emergent Patterns Tourism is entering an age characterized by; growth Moderating rates of growth security Heightened concerns about security competition Intensified competition among destinations deregulation and privatization Greater deregulation and privatization, encouraging market forces to operate impacts of tourism More awareness and attention paid to the growing impacts of tourism 86

87. Emergent Patterns A consumer who is more knowledgeable, experienced and empowered A tourism sector increasingly dominated by a small number of large multinational enterprises An increasing number of tourism product types competing for a fragmented market, and A technology ‑ driven marketplace. 87