2. International Tourism

3. The Tourism Industry Attractions Accommodation Facilities Internal Transport International Transport Tour Operators Travel Agents Incoming Tour Operators ‘Ground-handling agents’ CustomersCustomers National Tourist Office

4. Issues in international tourism Who controls the channel? –vertically integrated oligopolies –multi-national mergers (see my website) Impacts on quality –unsustainable over-development –low margins -> low reinvestment –homogenised products Morgan in Theobald(1996) Global Tourism: the next decade BH

5. UK’s position in World Markets UK is world no. 7 destination after US, Spain, France, Germany, China and Italy in terms of £ lower growth rate than rivals (down 2 since 1998) –tourism 4.5% of GDP –7% of the workforce (2.1m) UK is world no. 3 source country after US, Germany and ahead of Japan & France UK tourist spend abroad has doubled 1991-8 –Balance of payments deficit in tourism £6.8bn – increased to £11.5bn in 2000 (FMD etc)

6. Incoming Tourism Top five markets 2001 (1998) –USA3.6(3.9)m visitors£2.4 (2.5)bn –France2.8 (3.2)m£0.7 (£0.7) –Germany 2.3 (2.8)m£0.7 (0.9) –Ireland2.0 (2.1)m£0.6bn –Netherlands1.4 (1.6)£0.4 Total22.8 (25.4)m£11.3£12.5bn

7. The role of the NTO How do you market a product you don’t own? Theming and branding Promotion –Tourist promotion & information Facilitation of exchanges (Middleton) Distribution –between elements of the industry –Joint marketing campaigns Quality control and assuranceProduct training, advice and research Infrastructural improvements –Flagship projects –grants and subsidies

8. VisitBritain www.visitbritain.org New National Tourism Marketing body Strategic policies –price competitiveness –sustainability –partnerships and communication –quality of welcome Engage public and private stakeholders in the marketing of Britain

9. Marketing Strategy 27 target countries with offices Segmented by key markets, for example: http://www.visitbritain.com/corporate/links/visitbritain/campaigns.htm

10. UK outbound Cope, R ‘UK Outbound’ Travel&Tourism Analyst Jan 2000 82% to Europe, 9% to N.America Top six –France, Spain, Ireland, USA, Germany, Italy –fastest growth Latin America, E Europe, Asia, S Africa 34% inclusive, 29% independent, 16% business, 13% VFR To Europe 56% air, 44% tunnel and sea

11. UK Air holidays 1997-2002 (UK International Passenger Survey)

12. Inclusive holidays To the main destinations –Spain, Greece, Turkey, USA, Cyprus, Portugal- 60-80% of UK visitors take I.Hs. The market is dominated by 4 vertically- integrated companies –Thomson, MyTravel, Thomas Cook, First Choice with 57% of the market in volume. Spain has over 40% of summer and winter markets

13. The virtuous circle of tour operating Thomson Holidays in Morgan 1996

14. Thomson Holidays Vertically integrated –Britannia Airways, Lunn Poly Travel Agents Horizontally integrated –Thomson, Portland (direct-sell) Freestyle (youth) Just (budget) Holiday Cottages European expansion –'Fritidsresor' and 'Royal Tours' (Scandinavia) In 2000 acquired by German Preussag group (TUI)

15. Other sectors Skiing: –1m skiers 33% to France, 20% US –10% of inclusive tour market –ageing market, replaced by snowboarders Cruises –fastest growing cruise market in the world –becoming cheaper, younger, mid-market through entry of Thomson and Airtours Adventure –only 100k (0.5%) but growing fast –Egypt, Morocco, Peru, India, Nepal –empty nesters as well as youth

16. Future trends Budget airlines -> impulse purchase tourism Will the internet be a tool for DIY tourists? Or will the benefits of using a tour operator –low cost, convenience, quality assurance be transferred to the web? Mass customisation? (See Thomson site)See Thomson site Global consolidation? Global warming? Global terrorism?

17. Sources http://www.staruk.org.uk/ Cope, R(2000) ‘UK Outbound’ Travel and Tourism Analyst, Jan 2000 Corporate Intelligence Group, London http://www.visitbritain.com/corporate/links/visitbritain/tips.htm