1. Chapter 3 Tourism

2. 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

3. 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

4. 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

5. 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.”

6. Tourism Can Be Categorized by the Following Factors:
Geography
Ownership
Function
Industry
Motive

7. 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

8. 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

9. 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

10. Figure 3-1 The Hub-and-Spoke System

11. 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

12. Figure 3-3 Passengers Taking a Cruise Longer Than 2 Days

13. Cruise Market Segments
Mass market
Middle market
Luxury market

14. World and Domestic Organizations
Click on the links below for more information:
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

15. 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

16. 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

17. Figure 3-5 The Multiplier Effect

18. 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?

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

20. Wholesalers Consolidated services Tours Sold to the public Airlines
Other transportation carriers
Ground service suppliers
Tours
Sold to the public

21. National Travel Offices
National Offices
US now has an NTO
Private organization
Examples of other NTO’s
Canada
Germany
Australia

22. Destination Management Companies
Service organizations
Meet the needs of their clients
They sell destinations
Meeting planners
Incentive companies

23. 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

24. 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

25. 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

26. 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

27. Social and Cultural Impact of Tourism
Tourism pollution
Cultural awareness
Higher levels of employment

28. Ecotourism Buzzword Seeks to minimize the impact of tourism
Natural environment and native cultures

29. 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

30. 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

31. 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